Good morning, everyone, welcome to Terex's 2022 Investor Day. I'm Jon Paterson, Vice President and Treasurer of Terex. We wanna thank all of you for being here today, both in person and virtually via the webcast. We're excited to speak to you today about the opportunities we have here at Terex and the road ahead. Let me first begin with a few housekeeping items. First, a reminder that we will be talking about forward-looking statements, there's a disclaimer behind me on the screen, as well as at the beginning of the presentation that has been posted on our investor relations website. Second, we'll be conducting two Q&A sessions in a hybrid format. For those of you that are with us today in the room, we will bring a microphone over to you, and for those of you that are participating online, you can enter a question in the Q&A webcast box, and that we will receive that. I'd also like to ask folks in the audience, if possible, if you could silence phones just because we're gonna be streaming this through a webcast. That would be appreciated. When asking a question today, we would like if you could announce your name and the firm you're with, and then if you could limit your questions to one and a follow-up because we want to address as many as possible. Our first Q&A session will be at the end of the Terex Materials Processing segment where both John Garrison and Kieran Hegarty will be on stage to take your questions, that'll be followed by a 10-minute break. The second Q&A session will be at the conclusion of Julie's remarks on the financial outlook for the company, where all the speakers will be up on the stage. We also want to highlight that we're proud that the industry first all-electric bucket truck will be on display in front of the New York Stock Exchange between 1 and 3 P.M. today. We're hoping that you'll join us out there to view it. Let me briefly walk you through the agenda. First, our Chairman and Chief Executive, John Garrison, will share more about the investment opportunity at Terex and how we've transformed as a company and our position for growth. Kieran Hegarty, President of Terex Materials Processing, will walk you through the successes that we've had in the MP segment and how we plan to capitalize on growth opportunities in that area. Simon Meester, President of Genie, will discuss our measures that we've taken through recent years to reduce costs in the segment and to increase profitability through the cycle. John will come back to the stage to cover how recent investments in our utilities business have positioned that for excellent growth in the future. Finally, Julie, Senior Vice President and Chief Financial Officer, will come to the stage, speak about the financial overview and our 2027 targets. Right now, we'd like to start off with a short video about Terex, and then John will come to the stage. Thank you. Hello, I'm John Garrison, Chairman and Chief Executive Officer of Terex Corporation. Terex's purpose is to improve the lives of people around the world. You know, our mission really is to provide our customers solutions that help them achieve their business objectives, that maximize their return on capital. That's the solutions that we provide to our customers every single day. Safety is our 1 priority at Terex. We fundamentally believe that we have to create an environment where our team members, our customers, our suppliers can come to work and go home safe and sound to their loved ones. We have been engaged in a transformation for the last several years. It really started with our focus, simplify, and Execute to Win strategy. As a result, we've dramatically improved the operating margin of the company in over 400 basis points. We've more than tripled our earnings per share in return on invested capital and now we're poised and ready to grow going forward. Terex has great products, great brands, and we have great technologies. We're able to grow in adjacent geographic markets, in parts and services and we also have the ability to grow at adoption. More and more countries are adopting the use of our equipment. We're in a great position to grow participating in megatrends, things like electrification, things like investment in infrastructure, in digitization and recycling. All of our businesses participate in those areas. The second thing is we have a great portfolio of businesses that are market leaders around the world. We are enthusiastic about our MP business 'cause it's a really great portfolio of businesses that consistently perform through all different types of cycles. It's 60% of our operating earnings for Terex. Our Genie business is a great business. For 55 years it really helped to create the aerial industry. We are excited about our utilities business 'cause we think it's gonna grow substantially. Why is that? It's electrification and we're right at the heart of that. At Terex we have a disciplined capital allocation priority. First, we wanna continue to invest in our current operations, including capital expenditures for information technology, capacity, operational improvements. Second, we wanna provide a return to our shareholders through dividends. This past year we increased our dividend 8%, demonstrating the strength of the company going forward. Third, we have the strong balance sheet which will enable us as a business to grow through M&A as well. Finally, we purchase shares and we have returned $1.5 billion to the shareholders in share repurchases since 2015. Our strategy at Terex is really focused on three key themes: execute, innovate, and grow. We have the balance sheet, we have the cash flow now that we can grow organically but we also can grow inorganically. We're a company that delivers on our commitments. We'll go the extra mile to meet the customer's needs and frankly exceed what the customer is looking for and we're a good partner. We have good values. That's why we're so excited about the future of growth here at Terex. All right. Good morning everyone, and welcome and thank you for coming. It's a bit like church here. No one wants to sit in the front row. Again, on behalf of the entire Terex management team, thank you. Those here in person and those on the webcast, we know your time is valuable. To spend a couple hours with us, we truly appreciate that. For our investors, thank you. Thank you for the trust that you've given us, and we look forward to building and maintaining that trust as we go forward. Before I get started, there are a couple folks that I would like to recognize, and I think it shows the support that we have, which is three directors here. David Sachs is our Lead Director and Chairman of the Governance Nominating Committee. David's back there. Paula Cholmondeley is the Chair of our Audit Committee. Thank you for being here, Paula. Don DeFosset 's the Chair of our Human Capital and Compensation Committee. I think what that shows is tremendous support that we have as a management team with our board of directors. I'm gonna start with why we believe, as a management team, that Terex is a compelling investment opportunity, and this will kind of be the roadmap for our discussions this morning. First and foremost, we have transformed the company and the portfolio that we have. We now have a strong portfolio of diverse market-leading businesses that operate in attractive growth markets as we go forward. We believe we are well-positioned for profitable long-term growth. We also believe, we'll talk about, the growth can be bolstered by this concept of megatrends. We'll highlight a couple of things there that we think will provide us good tailwinds over the coming period of time. The other thing that we've done as a team is implemented, you know, an operating system. An operating system that helps us drive consistency and profitability, improvement in profitability, perhaps most important, return on invested capital. We think that is important to get that return on the capital that's entrusted to us by our shareholders. As a result of this, we've dramatically improved and strengthened our balance sheet, and we have the cash flow to support growth as we go forward. You know, finally, and perhaps most importantly to me, it's been an incredible privilege to lead the team that we have. We do have a global experienced leadership team. I would say. I'm gonna say this a couple times. It's a team that's been adaptable and resilient to overcome the challenges we've had. This is a team globally that has clearly demonstrated the ability to create stakeholder value. That's why we think we're a compelling investment opportunity as we go forward. We always start with our purpose is important. Our purpose is to help improve the lives of people around the world. We actually use this purpose as we work through the transformation, because we knew we needed to improve if we were gonna be able to fulfill our purpose. It was important for us as we go forward. If you think about the products and the solutions that we provide our customers and what our customers do with that, they do make the world a better place. We think that's incredibly important. Our mission's really focused on our customers. We have to provide our customers a superior productivity solution and return on their investment. These are capital goods. They need a return on their investment. That's what we're focused on from a mission standpoint and on our customers. Next, I'll talk about this several times, is from a team member standpoint, we wanna be the safest place to work and the best place to work. It's a hyper-competitive environment out there. We want to be the place to work for our team members. Next thing, most customer responsive. We're in the capital goods. Our equipment goes to work. We have to be responsive to our customers to win in the marketplace, the things that we do to increase that responsiveness so that we're always on top of the needs of the customers going forward. Finally, being most profitable. As an equipment manufacturing company, industrial equipment company, we still think return on invested capital is important and we need to earn a return on invested capital for the capital that our shareholders entrust with us. Our team, it's strong, experienced, it's global. One of our Terex Way Values is servant leadership. This is a team that exhibits that servant leadership all over the world every single day, helping their teams drive to accomplish the objectives that we've set out. You're gonna be hearing from many of these leaders in the room today, following me. All the leaders are in the audience. Please reach out during the breaks and introduce yourself as you go forward. Again, this is a team that has demonstrated the ability to overcome unprecedented challenges of the last three years and deliver value for all stakeholders. I said I would mention safety, and we will. It is the most important thing that we do. We have a relentless commitment to safety through our Zero Harm safety culture. We fundamentally believe that we have to create an environment as leaders where our team members, our customers, our suppliers, can come to work every single day and go home safe and sound to their loved ones. The good news is, we've made significant progress over time. The challenge is we're not at zero. We know we can be at zero 'cause we have teams that have delivered Zero Harm for many years. We know the objective of Zero Harm is possible. Again, made great progress. Much more progress needs to be made. Next here is around our Terex Way Values, where we say responsible ethical leadership, and we think that's important. One of the things we say to our teams is, "Listen, our values are not meant to be slogans on a wall, but it's how do we interact with team members every day? How do we interact with our suppliers? How do we interact with our customers?" We think that's incredibly important. One of the last values there on the right here is citizenship. I tell you, as a leader of an organization that's gone through, like many organizations around the world, an incredibly challenging period of time. heartened to just see what our team members were able to do in their communities, stepping up, looking after themselves, their families, their other team members, and their communities. Truly a great example of citizenship throughout Terex. Our team is our greatest asset. You'll notice we don't call them employees, and we don't call them associates. We call them team members. Why is that? It's been going on for a long time. We actually think that manufacturing is the world's greatest team sport. Some people may argue 'cause FIFA World Cup's going on, but if you think about everything that has to go well in a manufacturing environment, it is the ultimate team game, and that's what our team focuses on, especially around the safety side of the business, as well as the environmental improvement side. I'm responsible for my safety. I'm also responsible for my team members' safety. Committed to diversity, equity, and inclusion. Really stepped that program up. I'll talk a little bit about Women at Terex in a second, really stepped up our DEI initiatives. For us, we're a global company. We're trying to drive that inclusiveness around the world for the entire organization. We realize it's a very competitive labor market around the world. We have to invest in our team members so that they can achieve their career aspirations and achieve those aspirations with us at Terex. In terms of ESG, 5, 6 years ago, we didn't talk about ESG. Now we absolutely have to talk about it, we've been doing ESG activities. It's been embedded in our DNA for quite some time. On the environmental side, the biggest impact that we can make is really what we provide our customers and their ability to achieve their net zero and carbon reduction targets, and that really is with the products and solutions. Over 60% of what we currently offer today is offered via electrification. We also have an obligation and responsibility to improve our operations, we have some near term goals outstanding to reduce greenhouse gas emissions. I'd also call to your attention too, we did publish our ESG report. It is out on our website. I encourage you to take a look at the things that we have going in that environment. Next is social responsibility, and I think it starts for us on the safety side, but also engaging our team members. Been quite proud of the very active Women at Terex program. I think Amy's in the background there. She's led that program for many, many years, and now she's our CHRO. You have to work hard. We have to work hard to attract talent to the organization, especially diverse talent. That's been very active, and we've expanded that now into our DEI program, and we're accelerating that with global affinity groups, again, to drive that inclusiveness that we need. In this hypercompetitive environment, we wanna attract and retain the best team members that stay and have a successful career with Terex. Last, and certainly not least, is strong governance, as I think we exhibited here today. Very strong support from our board, very engaged. We have a diverse, independent board of directors, and they are active, not just in our ESG program. They're active in everything that we do at the company, and I thank the board for the support that they've provided. Last is responsible ethical leadership around our Terex Way Values. What you see there is living our values, again, not meant to be slogans. We were really pleased that just here recently, Newsweek announced that Terex is one of America's most responsible companies. We think that speaks to the journey that we've been on, and frankly, the long term, how Terex has operated in the marketplace. ESG is incredibly important and will be as we go forward. Now let's talk about just a look back because really we wanna look forward. We don't wanna look in the rearview mirror, but it is important to understand where we came from. We have truly transformed this business with the focus, simplify, and Execute to Win. Focus was really about focusing on some great businesses that we've had, and we'll show these to you. Businesses that had the ability to outearn their cost of capital, drive profitability, drive growth independent of what the cycle was. We had businesses that only returned their cost of capital at the peak of the cycle. Those are the businesses that are no longer with us, as you can see, on the chart. We've also migrated on the focus side to simplify, and simplify was we were pretty damn complex. We looked at how could we simplify everything that we could do in our operations through our operating system, and I think the best metric for that for us was really our SG&A as a% of sales and the improvement that we made there. Finally, Execute to Win. It's that foundational element of how you drive operational improvement in your business. It really started with a simple concept, understanding accountability and knowing the score and having the people, the process, and the tools to drive the outcomes that you're looking for was the basis of our operating system, Execute to Win. Over time, that's transitioned to execute, innovate, and grow, Simon and Kieran and I will talk more about how that's factored into our plans as we go forward. Finally, here in the last, you know, since January of 2021, we've relaunched our mergers and acquisitions apart. We've made seven investments over the course of this time, investments in technology, investments to expand capacity, and investments to expand our product offering into near adjacencies over the course of the last 18 months. What has it done? I think the ultimate proof of the team's hard work is in the financial results that we have delivered. We have dramatically improved the financial performance of the company. We've increased the operating margin by more than 400 basis points. We've more than tripled the EPS, and just a plug for quality of earnings. Those are GAAP EPS, not adjusted. We've more than tripled return on invested capital over a 1,300 basis point improvement. We think that's pretty important. You know, we were at a period of time where we weren't covering our cost of capital, and now we've got a margin significantly above our cost of capital in a world in a rising capital cost environment. We think that's important. Again, the team has confidence from what we've done, but we realize there's much more to do as we go forward. We do have to look back and say we delivered on the commitments that we made. The other area that we delivered on the commitment that we made was around capital and capital allocation. We committed to return between $1 billion and $1.5 billion to shareholders via share repurchases. We've done about $1.6 billion. We've returned about $200 million to shareholders via dividends, we've paid down about 60% of our outstanding debt. We've done that while investing over $600 million of capital in the business. You asked me one of the things I missed a couple years back was the level of capital that was required. We've invested over $600 million of capital in the business while improving the return on invested capital. As I said, since January of 2021, invested about $100 million in investments and acquisitions to build the portfolio going forward. The investments, where do we make them? Watertown, South Dakota. I'll talk about that during the utility. Significant investment in a market that we like. Simon will talk about Monterrey, Mexico. We've also made investments with Kieran in Northern Ireland. Our Hosur, India plant's been a great plant for Terex, and Simon and the team have done a great job there over the last decade for business within India, but also as an export center out of India. We made an acquisition in Jiading, China. If you're gonna, you know, sell in China, you have to produce in China, and we did that in our aggregates business. Just for example, we've also invested in technology and our IT systems over the course of time as well. What has all this led to and the changes? Where are we? It puts us in an advantageous position, which we believe is a well-diversified portfolio, both geographically and among end market customers. Our MP business now comprises 44% of our sales, but as you hear us say on the video, 60% of our operating profits. When you look at our global, we still are a global company with global reach, levered towards the U.S., North America. I think that's gonna be important given the investment that's gonna happen over the next 3-5 years. With strong presence in Europe, growing presence in Asia, so a true global company. Finally, customer applications. No doubt general construction is important to us. We also serve the infrastructure maintenance businesses. Kieran's gonna talk about scrap and recycling and that business and how that world is changing. That's gonna be an opportunity for us. Simon will talk about Genie products just don't get used in building things. They get used in maintaining, all right, and operating as we go forward. Clearly, the electrification side, we think, is a market that's going to continue to grow as we go forward. You know, Kieran and Simon are gonna talk more about this. The takeaway here is that we are in market segments, verticals, and in those segments, we are market leaders. That creates that competitive moat that you're looking for as you go through time. Every one of those businesses, not only are we leaders, we help to create many of these businesses. On the aggregate side, mobile crushing and screening, our Powerscreen and Finlay brands started that industry, you know, 60-plus years ago. Material handling, Fuchs business, that's a 100-year-old brand. Genie really helped to create the work at height aerial industry, as well as our utilities business. That's the TAM that's supported. We think it's about $34 billion. Also underpinned by a sizable opportunity in parts and service, which is critically important to our customers and critically been important to us 'cause that helps drive profitability and consistency in revenue as we go forward. Let's talk about this concept of megatrends and how we think that can provide some good tailwinds for us going first. At the center of that megatrend is sustainability. We fundamentally have to change the way in which we operate around the world. That key megatrend of sustainability, what else does that drive? If you look at electrification and net zero, all right, that's substantial investment required to achieve the net zero objectives that people have set out. Waste and recycling, that world is changing. It's a big space, and Kieran will talk more about it. A lot more regulation on what can and cannot go into landfill and what has to be recycled, and we think there's going to be an opportunity there. Infrastructure and infrastructure investments. How's that tied to sustainability? Very simply, inefficient infrastructure does not help your sustainability objectives. The good news for us has been around the world, there's been a lot more consistent in investing in infrastructure. United States, we've been a little slow, but I'm gonna talk about that in a second. Massive infrastructure bill coming, which we think is gonna provide strong tailwinds for us going forward. Finally, digitization. Everything is digitized. That requires substantial investment. That curve is not gonna change. That's still gonna, you know, big growth curve, and we'll be involved with our equipment in the digitization. We think we're well connected to durable drivers of sustainability going forward, and that can bolster or provide some tailwinds for us as we move forward. We're a global company, so I shouldn't put a slide up that's just about the U.S. We did, and we did because it's important. You know, for 20 years, we've talked about an infrastructure bill, and it never happened. Well, now we actually passed the Bipartisan Infrastructure Bill, that work is just starting, and we think that's gonna provide a good tailwind for us going forward. The Inflation Reduction Act is also, there's things in there around green energy and energy-related programs that will help. Finally, the CHIPS Act. This is substantial. The onshoring of chip manufacturing back to the United States is gonna require billions and billions of dollars of investment in multi-years. It also may be starting a trend of more onshoring of other industries as we deal with the geopolitical challenges of the world. Tremendous physical spend in the United States coming up over the next, you know, three to five years. We think that provides us a good tailwind as we go forward. Our strategic framework, execute, innovate, and grow consistency through time, safety at the top of that pyramid, driving commercial and operational improvement. You notice we also put team in there. Improving our DEI programs, our talent development programs are part of our execution plan and the scalable company operating system. That's how you operate your business and drive that continuous improvement that's required as we go forward. Innovation, sometimes we put the word purposeful innovation in front of that because we think it's important. It's gotta be purposeful. How are we helping our customers achieve what they're looking for? Product development, lifecycle solutions, electrification, and digitization, not just of our products, but of our operations in our interface with customers. The growth side. We like a wheel 'cause you execute improvement, you drive innovation, drives growth, and it builds on itself as you go forward. Around superior customer lifecycle experiences, expanding our addressable markets. You're gonna see what Kieran and the MP team's been able to do to grow, and part of that growth has come from expanding their addressable market. Portfolio development. As we go through time, as we achieve our financial targets, we're gonna have cash that we're gonna be able to deploy to continue to grow. What are the pillars as we think about pillars or themes about growth, and as we go forward? The first is this concept of capitalizing on the mega trends. The circular economy. Kieran will talk about that. Electrification really ties to utilities and other aspects of the business. The Infrastructure Bill supports all of us. I shouldn't say grow Materials Processing. It's going to continue the growth of our Materials Processing segment as we go forward. Kieran will talk about that. Optimizing Genie through the cycle, both the revenue and the profitability. Simon is going to discuss that in detail on how we can take a really good business and make it a great business as we go forward. Strong foundation on the utility side, given the investment that's needed, the investment we've made, we think and we know there's going to be opportunity for growth there. Finally, parts and service, because at the end of the day, that's critical to the customer and critical to us. We believe we've got multiple vertical ways in which we can grow this company going forward. What does it mean? These are our financial targets, our financial objectives. The first thing is we're excited because we think this can be a $6+ billion revenue business over the next 5 years. We think that's an achievable target for us as a company. That CAGR is about 7%. I was just chuckling, Jamie's out there somewhere. My comment is, it probably won't be linear. All of us have been around long enough to know it probably won't be linear, but the starting point and the ending point, we absolutely believe is achievable. We acknowledge there's some, you know, negative market crosscurrents out there, no doubt about that. Julie will address some of those in the financial segment. We believe we can drive revenue growth, but as important, we believe we can drive margin expansion with the activities that we have, principally in our AWP segment, but Kieran and the team will continue to drive margin expansion as well. We think we have the opportunity to drive revenue growth and expand margins, and margins just above, you know, greater than what you'd get from your revenue growth is what we're saying here on margin expansion. At the end, we think we can be a $6+, and this is organic, $6+ billion-dollar company with 13%-14% operating margins is the targets and the objectives that we've set out for ourselves. With that performance, we believe there's gonna be inorganic opportunities. Where are we looking to expand our portfolio? We will have tasks to deploy when we deliver on those objectives. First is around utilities and infrastructure, specialized equipment, specialized applications in that space and global. Our utilities business is principally a North American business. We think there may be opportunities in that space. In minerals, aggregates, and concrete, a lot of opportunities there, we believe. Several verticals in that space are fragmented. We think there's gonna be some opportunity over time for some consolidation and growth there. On the waste and environment, it's a huge scope. What we have to do is target where we're gonna compete, but that is, you know, as part of that sustainability, that is going to continue to grow. On digital and electrification, we've made two investments. On the digital and electrification side, we're looking to advance our technology, our product offering. We will make investments in companies that help us to do that as we go forward. We'll talk about Viatec and Acculon, two examples of that acquisition. Last but not least is we look around, what do our customers do? Job site productivity and services around that job site productivity is an area of interest for us. Anything that ties to that parts and service, lifecycle solutions of that product over time, is something that we are that we're keenly interested in. We do think there will be opportunity for us as we go forward. Before I turn it over to the rest of the team, I just wanted to revisit this slide. You know, the key message is we have transformed the business, but we know there's continued opportunity for improvement. We're not stopping, but we have dramatically improved the performance of the business. We have demonstrated the ability to create shareholder value for our shareholders and our team members and our customers. From that experience, the team has confidence that we can continue to drive improvement as we go forward. With that, I would like to share the stage now or turn the stage over to Kieran. Before I bring Kieran up, we're gonna roll a video and let me just talk real quick about Kieran. Kieran's been with us 30-plus years. He came with us from the original acquisition of Powerscreen. A true industry expert, knowledge. You'll hear when Kieran starts to talk, he's not from our side of the pond, but a true global executive, and he spends his life on an airplane as he travels around the world adeptly leading our Materials Processing segment. Let's roll the video, and then Kieran will be up. My name is Kieran Hegarty, and I am the President of Terex Materials Processing segment. What makes Terex unique, and particularly Materials Processing, is the diversity of the portfolio and the market leading position. Materials Processing has been a consistently high performing part of the overall Terex portfolio. That consistent performance is driven by our people and the fact that we deliver great products and ultimately we deliver the best solutions to our customers. The Materials Processing segment is a portfolio of different businesses focused around five key verticals. We make machinery and solutions for the production of aggregates. Aggregates are used in our everyday life on the roads we drive on, the buildings we live in, all produced with aggregates. Our environmental business is one of the fastest growing segments of the overall Terex portfolio, focused on providing sustainable solutions for customers to process a wide variety of waste. Our material handling consists of two primary business units to efficiently solve customer problems around the speed, efficiency, and most cost-effective way of handling material. Our concrete business is primarily focused on the North American market and really focused on concrete delivery. Our lifting business really consists of three specialty business units used across multiple applications where specialty lifting is required. What unifies our portfolio is we consistently operate our businesses in a standardized and consistent fashion. We're very focused on how we manufacture, how we cost our products, how we design our products, how we deliver solutions to customers in terms of our spare parts. We have an operating system in the background ensuring that we operate our businesses in the most cost-effective fashion possible. We have a diverse portfolio in terms of products and the markets we serve, we also have a global footprint from a manufacturing point of view and from a sales and service point of view with a significant presence in North America, a significant manufacturing presence across Europe, ranging from Ireland to Italy to Germany. We have manufacturing in India, recently made investment in China manufacturing. We continue to develop larger and larger higher capacity machines that provide more solutions for our customers. Terex MP and Terex continue to look at opportunities not only for organic growth, we're also looking, continually looking at inorganic opportunities. We believe Terex Materials Processing has a very strong future, continuing to drive new product development, continuing to drive geographic expansion. Not only have we got product opportunities and market opportunities that combine that with global opportunities and increasing global adoption, we believe that we really are a strong platform for future growth across the portfolio. Hey, John, thank you very much. As John said, my name is Kieran Hegarty, and I've been with Terex now for over 30 years. If you're wondering, I started when I was about 10. I suppose you've heard us sort of speak many times, and John mentioned about the breadth and the diversity of the Materials Processing portfolio. I think you can really see this in that slide, right? That's really, that diversity is really part of our story, right? The story I want to get across to you today. We are organized effectively into what we call five verticals, right? Our aggregates vertical, our environmental vertical, our concrete vertical, material handling and lifting. Whilst we have a diverse portfolio that really creates this diversity, creates, in our view, multiple opportunities, you know, that each of the verticals are focused on, right? One of the common themes is all of the verticals we believe are favored by similar mega trends and tailwinds. While some of these mega trends might directly impact some of the verticals more than others, overall, the segment, these tailwinds and macro trends are important. The other thing as well is, right, whilst we run a diverse portfolio of businesses, we also utilize a common operating system, right? I'll talk about that in a moment. That's really important, right? Whilst we have common operating system and common KPIs, we also maintain deep specialized knowledge, product knowledge, market knowledge within each of the verticals, right? That's one of our core strengths overall as a segment. We also strong channels, and I'll also speak about that in this presentation. We believe that's a significant asset and also a significant competitive advantage. Our go-to-market strategy and our go-to-market methodology is really important and is a key part of our story. As John pointed out as well, we also have a strong and growing parts business. Again, that's important for our customers, but it's also important for the financial performance of Terex, given that it creates a steady income. Dive in a little bit deeper into the MP portfolio. Our 2022 outlook, as John pointed out, circa $1.9 billion of revenues, right? That represents about 44% of Terex's revenues in 2022. Again, a key stat here, MP represents approximately 60% of the Terex operating earnings. Whilst we make up 44% of the revenues, we're contributing 60% of the operating profit. If you look at the actual verticals that we're in, aggregate, and we do have a very strong leading position in aggregate, makes up approximately 50% of the revenues. Again, across the rest of the portfolio, we believe we're well-balanced across the other verticals, you know, in concrete, environmental, lifting, and handling. We also emphasize balance in the geographic markets that we serve, right? Whilst Terex overall, I think the stat was around 55% in North America, that's probably skewed given the utilities business and our Genie business, right? From an overall segment point of view. We have probably much more balanced, right? About 40% of our revenues come from North America, 35% coming from Europe, from Western Europe primarily. We also have good spread in, you know, India, Asia and other markets, right? That's important as well, right? You're gonna hear this theme today from myself, you're gonna hear it from Simon. One of the key drivers as well as the macro sort of market drivers adoption story, right? The solutions that we make, whether it's in crushing and screening, whether it's in environmental, whether it's in material handling, adoption and growing adoption across the globe is really, really important, right? That adoption, for example, we've got a very strong and growing position in India, and that story is all about adoption. They're adopting our technology and practices because it's efficient. We'll also talk about a moment ago, I mentioned about our channels, right? 55% of our revenue goes through what we call specialized distributors, and I'll speak to that in a moment. About 20% goes to multi-line dealers, about 25% of our revenue, we also sell direct to the end user, right? A key thing that I wanna get across here is we've a flexible go-to market. Flexibility is the key, right? We're not tied, we're not wedded to a single distribution model. We have flexibility depending on the product line, depending on the market, right? A key word I wanna emphasize here is flexibility. If you look at some of the verticals, right. In a moment, I'm gonna give you what I consider to be, again, a compelling story in terms of where the MP growth has been over the last number of years. We've enjoyed growth in our verticals as well, right. If you look from 2016 to our 2022 outlook, we've enjoyed, you know, 9.5% CAGR in our aggregates. Our environmental segment, whilst it's one of our smallest it is our smallest vertical at the moment. It's enjoying over 14% CAGR over the same period. Again, we see huge opportunities in the future in that environmental sector. Our other businesses across lifting, across concrete, across handling, have also grown at a 7% CAGR as well, right? Again, within the verticals, we're seeing growth across all the verticals. If you look back from 2016, again, John gave you the stats of the data from Terex. Again, MP has gone from a $1.2 billion revenue segment to $1.9 billion, right? We've enjoyed 8.7% revenue CAGR, 17.4% operating profit CAGR. Over that period, we've improved our operating operating profit by almost 600 basis points. Another key thing I wanna point out as well, we were all affected in the by the pandemic. We had factories closed, we had customers were shut. It had a significant impact on our industry as it did across many industries. In the depths of the pandemic, and for that full year, we still delivered double-digit operating profit. Again, it again speaks for the resilience we believe of our segment, of the products we're in. It really speaks for the team members, for the team that we have to deliver what I consider to be a very strong performance in a multi-year period. Again, again, we're not a flash in the pan, as they say. We are a consistent performer for Terex, and that's an important part of our story. If I talked about earlier, John talked about drivers, macro drivers, tailwinds, right? We face and again, depending on our vertical, obviously if you look at some of the data in terms of forecast data, aggregate consumption globally, 2021-2030, is considered or is assumed to grow at 5.7%. Construction and demolition, waste recycling, again will enjoy strong CAGR. Concrete on a global basis, scrap steel, all these drivers that, you know, for example, scrap steel, impacts our material handling business. I also wanna emphasize a lot of these drivers are cross-cutting. They cross-cut our verticals. For example, construction and demolition, is a great example of more and more of the world's aggregates today are being produced by recycled material, right? That really favors the type of it favors the products that we have in our crushing and screening business and our Terex washing business. I wanna really emphasize that a lot of these drivers are cross-cutting, right? The growth in the circular economy is a significant tailwind, not just in our environmental segment, but it also it's cross-cutting across our segments. John also mentioned, he had a full slide on the investments that are gonna happen in North America as a result of the Inflation Reduction Act and the infrastructure. That's really important given that 40% of our revenues come from North America. I also wanna talk about that infrastructure investment also is happening in India, where we have a very large exposure as well, again, across our verticals, right? There's multiple drivers cross-cutting, some that a bit more specific to certain verticals than others. All these drivers collectively are driving the MP growth. Just in terms of also wanna reemphasize that, there's some significant overall underlying trends, right. We talked about adoption, right. We are seeing increasing adoption of our solution in the developing economies. We are already well established in the developed worlds, you know, in Europe and North America. That adoption, which has been a consistent story over a multi years, it's going back now a number of years. The adoption is global, right. And it's accelerating and it's increasing. The reason why we're excited in adoption is the solutions that we have, you know, whether it's mobile waste processing machines, mobile crushing and screens or crushing and screening equipment, whether it's material handling, whether it's the specialty pick and carry crane, they are the most efficient solutions that customers could use to do their job. We also have an increasingly a growing install base, right? Again, that install base demands specialized service and parts. Again, you'll see in a moment we are investing significantly like the rest of Terex and have invested and will continue to invest, how we deliver parts and service to our customers. Lastly, I wanna talk about regulation, right? This is really important, right? Because again, I think this is a really strong driver across our business, whether that's, you know, regulations in safety, in emissions, quality, and I'll talk in a moment about recycling. I wanna give an example of safety, right? In Australia, we have a dominant position in the pick and carry market with what we call our Franna crane, which is a crane that lifts material and can move, right? We have about 90% of the Australian market, right, which is circa 300 cranes a year. However, the biggest crane market for pick and carry in the world is India, which has an annual volume of about 9,000 cranes a year, right? We've now recently launched the pick and carry crane into India. The value proposition that we're bringing to India is not just our pick and carry, is we're actually bringing safety. The Indian customers actually refer to the Franna crane as the safe crane. You're seeing now this focus on safety. All developing markets are actually, you know, making sure that there's a general trend of make workplaces safer, right? Just like Terex have a huge focus on safety, a lot of other companies do. Again, these are some of the drivers. Environmental regulations, right? We talk about the circular economy. Europe is well established in terms of recycling, right? They've got huge percentage of waste is diverted from landfill, right? That suits our machinery, our processing machinery. Those regulations are spreading. Canada, for example, recently adopted fairly stringent regulations around landfill diversion. We've seen huge growth in our environmental business in those markets, right? Again, that focus on the circular economy is really important and a key driver across our businesses. We believe, look, we're uniquely positioned to win, right? As Terex, we believe, like, as I just mentioned a moment ago, our solutions are the best. They're the most efficient, whether it's a concrete mixer truck, whether it's a pick and carry crane, whether it's a mobile crusher. We believe we have the best solutions. We also believe our distribution model offers us on how we go to market, we have strong application knowledge that we can apply to our customers, and that's why our customers give us business. Again, I just mentioned that on the distribution. We also believe we have across, whilst we are a diverse portfolio in terms of product diversification, our robust operating model is important to delivering financial results. We have deep business knowledge within the verticals. We run a GM style model in terms of each business unit's accountable for their own business line performance. That's something that we've applied consistently over a number of years. I also wanna also comment on the fact that whilst we are a diverse portfolio, we do leverage multiple synergies across the business, right? We synergies like central sourcing platforms when we develop digital tools. If they're applicable across a unit, we apply them across a unit. We share engineering resources in areas like electrification. We share manufacturing footprints. The new factory in Campsie, in Northern Ireland, again, is a multi-brand site. Similar in India. We share parts from service infrastructure, warehousing across the globe. Again, this parts and service focus, again, strengthens our long-term relationship with the customers. Again, as you'll see in a moment, it's a growing part of our business and really, it's a business of us focusing on that there, not just for the benefit of customers, but also to generate consistent revenue streams for our customers. Look, as I dive deeper into our aggregate solutions, right? Which is, as you've seen from the slide earlier, approximately 50% of our revenues. Historically, we have been very focused on mobile equipment. Indeed, we were the pioneer of mobile equipment in the 1950s when John Finlay came out with the first little self-contained screen with a small diesel engine, that spawned Powerscreen. So we spawned the concept of mobile crushing and screening, right? That mobile crushing and screening, there's a growing percentage of the globe's aggregates are produced by mobile crushing and screening. The reason why that is we have invested in continuing developing the technology. We make our machines larger, they've got more capacity, so it's a much more flexible asset than traditional stationary. However, we still operate in stationary. We design modular equipment, and we've, you know, a number of different brands within our portfolio that make us number one in the aggregate sector. I also talked about the recycling. Not only does recycling and producing aggregates from recycling favor our tracked or crawler tracked, our Powerscreen, our Finlay and our EvoQuip business, but also like businesses here, you can see down here on the right-hand side, this is what we call the urban quarry, right? Where this is actually just outside Geneva in Switzerland, where we are taking waste excavation material, right, in a suburb of Geneva and producing high spec quality aggregates by washing them, right? This plant we even talk about recycling, right? It's a closed loop. We even recycle the water that's used, right, in a closed loop process, right? Again, dominant position. Continue to invest in ongoing product development in our aggregates business. Closer look at our environmental business. A relatively new business for us, right? We really only built this vertical starting in 2015, right? We've seen tremendous growth here. Whilst we say, you know, whilst today it's our smallest segment, I'm really bullish on this area of the business, right? Because again, the mega trend is the world, our customers, we're all embracing the circular economy, sustainability. The products that we make are right at the heart of what we do. Again, when we talk about leveraging synergies and moving, John talked about moving into logical adjacencies or purposeful adjacencies. A good example here is the technology that we're market leaders for are known for in our crushing and screening business. For example, our crawler tracked on our mobile business. We applied the same know-how and logic to our, to our waste processing machinery. You know, we use the same technology, the same engineering competencies, and applied to them to those business. In the space of the last seven years, we've, within the environmental, we have the CBI, a business unit focused, manufacturing in North America, focused on primary wood processing. Ecotec, which we started up focusing on mixed waste construction demolition. Recently launched Terex Recycling Systems because a lot of recycling of waste actually also happens indoor, right? Typically indoor you don't need a mobile solution. We also identified that as an adjacency that we could move into and recently launched TRS. Earlier in the summer, we acquired a company in Helsinki, Finland, called Zen Robotics. Now, Zen Robotics are the pioneers in artificial intelligence that can sort and identify different waste types, right, by using the technologies above my head, right, to be honest, right? Different types of, you know, identification, infrared technology, X-ray technology. What that does is it picks waste by eliminating the need for human beings to stand over a belt and physically pick waste, which is the common methodology in much of the world. That's dirty, that's dangerous, and it's not cost effective, right? By allying these products to our TRS business, we believe we can build a really, really strong franchise in our environmental business. Look, the other parts of our verticals as well. We talk about our concrete segment, again, very much with very big focus in North America. We've got a very market-leading position in front discharge concrete trucks, which is again the most efficient, we believe, the most efficient way for our customers to pour concrete. We've a market-leading position in bridge pavers. We just wish the market for bridge pavers was much stronger. Earlier in the summer, again, we acquired a business based in Canada, a company called ProAll, that makes volumetric mixers. Basically a volumetric mixer is a mobile concrete batching plant. When you drive on site, you program the product, and it can make specification concrete to your needs right on the site. Again, we actually believe the ProAll business has got very strong international opportunities as well, so we're looking to expand that. I talked about lifting earlier. John mentioned Fuchs, a 100-year-plus business, right? With a top three position in the Fuchs material handler. Again, we also expanded into adjacencies like ProStack, which makes conveyors that we leverage across our verticals. We provide now conveyors that work along with our aggregate processing equipment. We provide conveyors that work alongside our waste and also in bulk in terms of so oftentimes in terminals, you see a Fuchs machine loading conveyors to, you know, load barges and various types of bulk. In our specialty lifting business, right? I mentioned the pick and carry crane in Australia, which we've now just introduced into India, right? The biggest pick and carry market in the world, right? Significant opportunity, not just in India, but there's also an adoption story in that region, right? Again, the most efficient way to from a pick and carry perspective. We also in Europe have a leading position in Rough Terrain Cranes. Again, leveraging our footprint in India. We will launch an RT crane, the upcoming Bauma India is at the end of January. In which we will launch our RT crane and then our Tower Crane business as well. Again, a leading position in Europe, strong position in North America, particularly Canada, as well. Again, opportunities in markets like India for that as well. Look, you heard me talk earlier about our distribution, right? I do wanna emphasize, we believe our distribution methodology and our distribution networks are one of the most significant assets that we have, right? We really do believe it's a differentiator between us and our competitors. We have deep, trusted relationships with a powerful network of distributors across the globe. What those specialized dealers give us is the ability to provide solutions to customers that really demonstrate our application expertise. 'Cause when you're applying crushers or you're applying waste, there's a lot of variability in the material. That knowledge, that specialized knowledge of what's the best solution for the customer is really important, and that's the strength that we really focus on. Again, if you look at some of the stats, about 55% of our business, and there's some example, whether it's a crushing and screening company, whether it's a material handling company, whether it's a specialty lifting company, they are specialized in their field. However, I did mention flexibility, we also own multi-line or also go to market via what we call multi-line distributors as well. That's important as well because using multi-line distributors, we also see what other products they're selling, and we're always continually thinking and looking for opportunities as to what adjacencies that we could move into that suits our distribution channels. Then we also sell direct. Again, some of our more complex products, like our Terex Washing Systems, our Terex Recycling Systems, don't suit a traditional dealer model. We're now focused on developing, you know, direct relationships with some of the big global customers, and that's an important dynamic as well. Just circling back to what I want a sort of key takeaway in terms of our distribution is the word flexibility, right? We have maintained a flexible distribution model. Some other stats, looking at the metrics, you know, the average tenure of our top 130 dealers is 23 years. I talked about a key differentiator for Terex, for MP, is those long-term trusted relationships, right? On average, a typical dealer will cover 2 of our brands. We have 53% wallet share on average with our dealers. Why wallet share is important, wallet share, i.e., what% of their revenues are made up by Terex is mind share. The higher the wallet share, the higher the mind, the higher they get up every day when they go out talking to customers, they're talking about our products, right? That's important, right? Again, 16% of our top dealers are 100% Terex. I stress, and can't overemphasize or do want to overemphasize the importance of our distribution model. Talked about digitization, right? Look, digitization's everywhere today, right? Everybody's talking about digitization, right? We're invested in digitizing our manufacturing sites, you know, our back-office processes, you know, helping increase our speed and throughput and productivity in the factories. You know, we continue to invest in further factory automation, for example, in areas like robotics and some of our fabrication facilities. Also what's really important to us is investing in digitization that really matters to the customer. This in the middle here in this slide, you can see some of the digital tools that we have rolled out over the last couple of years, right? With the ability remote service, right? to be able to provide remote service. We can see what the technicians are working on through specialty glasses. We have fleet management. We've rolled out configure, price, quote tools. We've got very strong dealer and customer portals where customers can go online, they can look at their fleet, their fleet management, they can look at their asset performance, their fuel consumption, their greenhouse gas emissions. That's becoming more and more important as customers and even job sites demand of the contractors that they report data, for example, on their emissions, right? Again, we can provide all that in real time to our customers. We also, those deep relationships that we have with our distributors, we're very focused. For example, we have e-commerce. All our business units have the ability to transact online spare parts. Many of our dealers have not got that. We're making significant investments to make sure our dealers, those specialty dealers, also have those capabilities. Again, that's critical. Digital drives productivity, it drives efficiency, and ultimately it has to drive uptime for our customers, right? That's the critical thing. Does it really benefit the customer? There has been significant investment and there's significant ongoing investment in digitization. John talked about execute, innovate, and grow. In a moment, I'm gonna talk, just to give you some examples of how we execute, how we innovate, and our strategy to grow. Again, the Terex operating system is core to everything we do as a segment. It's core to everything we do in the verticals. It's a critical part of our strategy, right? Whilst that evolves, it's not a constant, it'll evolve as, you know, market dynamics develop, as products develop and change, right? The key themes of execute and innovate to grow are really now embedded in our DNA, right? That remains a constant, is to focus on really driving growth and delivering superior financial outcomes for Terex and their customers. A good example of execution here is our what we call our MP operating system, you know, as we apply to our factories, right. Again, rigorous processes starts from how we do our S&OP, our sales and operation planning, how we do our production control, how we manage our bill of materials in the factories, how we schedule supplier management. Rigorous processes which we apply. I spoke earlier, we apply these whilst we have a diverse portfolio. We've rigorous set of standard processes that we apply across all of the MP business. That really, you know, when we applied across each business, along with strong management, we know it drives superior results, right. If we have these consistent processes, systems, KPIs across the business and functions, it drives discipline, drives accountability, and again, that key message, it drives consistency of performance. Parts growth, as you can see on the right-hand side here, 6.5% CAGR from 2016 to 2022 outlook. We've really focused on key areas like parts availability, and not just parts availability out of our warehouses. The most important thing is what does the customer experience. We now, with what we call our CDI digital tool, our Connected Dealer Inventory, we can now measure our dealers' fill rates, our dealers shipped on time at the end user level, because ultimately that's what matters, is the ability to measure it at the end user level. Again, we've improved our parts availability, we've improved our average fill rate and ultimately improved our customer satisfaction, right? We continue to do that. It's a closed loop. It's parts, dealer engagement using digital tools and service. It's all critical for us to grow and enhance our parts business. As I said a moment ago, this is critical for our consistent revenue generation. I want if I could dwell on this slide for a moment, right? Because again, I think this is a key part of the MP story, right? When we talk about purposeful innovation, right? Fueling profitable growth. On average, about 25%-30% of our revenues comes from new products. We define new products as, you know, more than a 30% bill of materials change, right? On average, annually, we drive about 25%-30% of our sales come from new products. That's not necessarily, whilst that's an important part of our growth story. On the right-hand side, what's really important part of our growth story is these new categories. John talked about logical adjacencies or adjacencies that we can enter. I want to give some examples of the adjacencies that we have identified over the course of the last couple of years, right. EvoQuip is our EvoQuip business is a business that makes compact crushing and screening equipment. We look to trends across the globe, is more and more crushing and screening happens in urban environments. If you knock down a 10-story building in Brooklyn, instead of you hauling all that material away to some landfill in upstate New York, you know, you can crush and screen the product on-site using our EvoQuip, you know, highly mobile compact equipment on-site, you know, delivering quality aggregates, cutting down on truck movements, green, and really, you know, really improving the carbon footprint of our customers, right? Also entered washing systems. Terex Ecotec started that business back in 2015, growing significantly when we identified the recycling. Also launched MPS Modular, again, within our stationary crushing and screening business. We identified that our customers wanted flexible electric solutions, so we launched our MPS Modular business. That, looking at new categories and adjacencies, that continues, right? Terex Recycling Systems, a great example of a new adjacency that we're just moving into. Very, very positive on the, on the future with that. You know, we couple that with our ZenRobotics investment, really strong there. We also mentioned about digital solutions, right? On how we have opportunities to continue to develop digital solutions and apply them to our customers and our distributors. Again, I wanna really emphasize purposeful innovation, right? That we have. That's really an important part of our story. Again, if I give you some real world examples of some of that purposeful innovation. I talked a moment ago about the EvoQuip business compact machinery that can go in and work in urban environments or and also expanded our addressable market, which is really important when we talk about adoption. More and more customers, it's not just the traditional quarries who now use crushing and screening equipment. It's more and more contractors who never before would have used a crusher or a screen. Now you see based on the technology that we have, when I digging up a piece of land to build a new Walmart, I may as well crush and screen the material that's on-site and our machines are right at the forefront of that. Talked about the modular, the electrical modular. I also wanna highlight in our Finlay business, just launched one of the industry's largest crushers and screens. We're not all about recycling. These are used in quarries, right? Again, that machine's capable of producing up to 1,000 tons an hour of aggregate, right? It's fully mobile. On-site, it can move when you do a blast at the face, it can move out of the way, and then when the material's blasted and comes down, it can track back and crush there and then. Also when you need to move that machine to a different site, it can break down into three loads and be transported to another quarry, another location within a matter of hours. We talked about our Terex washing business recently launched a filter press range, right? What filter presses do is recycle water. They take all the dirts and the grit that happens when you wash aggregates, and it processes that water, and it spits out the grit in a dry cake. Really important in the growth of the urban quarry, right? The fact that we can recycle the water. Looking at our environmental business as well. I mentioned earlier, this was a brand new vertical for us that really we started in 2015. In that period, we've introduced 40 new products, right? We now are building one of the industry's most comprehensive product offerings across, you know, a full range of whether it's shredding, whether it's screening. We are really building out our portfolio. Again, I also wanna stress that leverage, the idea of leverage, right? Not only are we leveraging our manufacturing site, we're leveraging our technology, but we're also in many cases leveraging our distribution, right? That's an important theme, again, our specialty distribution channel, right? I also wanna point out the Ecotec handler. That's actually a Fuchs machine that we brand as an Ecotec. The reason why we did that, we realized a lot of our customers need an efficient solution to feed the waste to the shredder or feed the waste to the trommel screen, right? The most efficient way to do that is with a handler. Where we have different distribution channels than our Fuchs channel, we utilize the Fuchs Ecotec handler, which comes from Fuchs, right? We branded a Fuchs handler. Again, ideas of conveyors. We also have the conveyor business line that we have, our ProStack business line. We also make branded products that we use across the portfolio. Again, there are some examples of the recent environmental innovation. Again, I wanna stress that innovation is segment wide. It's in all our verticals, right? Just to highlight some of the others, at the recent Bauma show, our Fuchs business unit had a fully battery electric model that we launched, enabled zero emissions for our material handling customers. In our concrete delivery, for example, in our Advance business, recently launched, well, smaller versions of our front discharge, and also a Mini-Mix product that also allows us to buy or to mount the concrete mixing technology on electric trucks. Again, excellent in an urban environment. I mentioned earlier about the launch of the Franna product in India, the largest pick and carry market in the world. That's a ground up low cost model that we believe will drive accelerated growth, not just in India, but also in that region, right? Again, these are just a few examples excuse me, of the next generation of solutions that we've built for our customers. Again, the key theme again is that adjacency, our ability to expand into adjacencies. We talked about electrification. Everybody knows the world is rapidly demanding electric solutions. In many cases, whether it makes sense or not, that's what the customers are demanding, right? They are demanding electrification. We have for many years in our tower crane business, in our modular crushing and screening business, in our wheel conveyor business, in our washing system, they've always been electric, right? 'Cause electric's the most efficient way to operate them. They operate in a fixed site where there is power, right? Typically a lot of grid power. That's the most efficient way. We've had electric offerings for many years in those businesses. We have also invested significantly in really hybrid technology. I mean, I talked a moment ago about the battery-driven Fuchs, right? Again, I mean, if you look at crushers, the battery technology is not there yet to power a crusher all day long, given the power consumption that it has. What we've invested in is hybrid, right? If the site that a crusher's on has mains electricity, our machines have the ability to plug into the mains, right? That's important. Where it goes to a site, 'cause remember, they are mobile assets, it has the ability then to power itself with its onboard engines, et cetera. Hybrid's important, and we've invested significantly in that. In terms of our on-highway mobile assets, I mentioned earlier a moment ago about our Mini-Mix Advance, utilizing electric trucks that we buy in. We're really watching that space. In terms of because the duty cycles for these products today don't necessarily. There's not a readily made solution at the moment for those products. Again, I do want to stress 60% of our products today that across our offering does have electric options. Look, we talked about the impressive growth we had historically from 2016. That, you know, the 9% CAGR, the strong operating profit CAGR. We do believe that if we continue to execute consistently, we continue to expand into adjacencies, we can deliver organic growth 2022-2027 to get the segment to be about $2.7 billion or 7.5% CAGR. Also believe that we can improve our operating profit performance again from the 15% up to the 16%-16.5%. Again, look, with growth, we anticipate our strong operational performance to continue and improve our operation margins over that period. I also want to stress there are also significant inorganic opportunities across the portfolio. I think going forward, as John talked about, we have the opportunity to allocate more capital to the MP given many of the verticals we have are fragmented and we really do see strong opportunities in these markets and particularly some of the adjacencies. I do want to stress, you know, since John mentioned Terex reestablishing inorganic growth opportunities from 2021, really, you know, we've done a number of investments across MP, the portfolio. 2021, we acquired Jiading in China, again for capacity. We want to be a player in the Chinese market. We're not going to be a player in the Chinese market unless we manufacture. We also acquired fabrication facilities in Northern Ireland. Again, focused primarily at this stage on our crushing and screening and environmental given our footprint there. We also made product expansions, right? This idea of getting into the adjacencies, trommels, heavy-duty trommels that are used in large quarries and mines, a logical adjacency for us. It suits our distribution channels. We acquired that business back in July of 21. That's growing very nicely. This summer acquired ProAll in Canada, again, to expand our adjacency in concrete delivery, right? Where we already had a strong position in North America. The ZenRobotics, which is really a technology play that makes us more relevant in the environmental space. Look, to finish on the MP bit, right? Firstly, I appreciate the opportunity to tell you more of the MP story, right? Again, reiterating that whilst we're 44% of the overall revenues of Terex, we do make up an outsized amount of the operating profit. Look, we really are excited about the next chapter of profitable growth. We do believe we have a strong portfolio of market leading specialty equipment. We have a consistent and solid track record going back over many years. I showed you data from 2016, but we've, you know, many years before that, parts of our portfolio are strong, very strongly. We have a really strong, and I can't reemphasize this enough, our distribution flexibility, our specialty dealers, our ability to go direct. That flexibility is really, really important and really is a strategic advantage to us. We continue to invest also in our parts business, in organic upside, really adding capacity in India, et cetera, markets that are really important. Again, just the last bit, right? There are multiple and significant opportunities for further expansion in these segments, again, by adding positions in adjacencies, right? In near adjacencies that we can leverage, and that's across our portfolio. Look, again, thanks for your time. I think now, John, we're gonna answer a few questions. Before we go to our first break, Kieran and I are available to answer questions. I'd like to try to keep your questions to the MP segment. We'll have questions on the financial side at the end of the day. Just as a reminder for those of you in the room, please wait for a microphone so everybody on the webcast can hear you. For those who are participating online, there's a Q&A functionality at the bottom of your page where you can enter any questions you'd like us to ask the management team. We're actually gonna start with a question from Stephen Volkmann from Jefferies. All the MP end markets have been growing nicely. Do some grow faster than others in your plan? Is there meaningful margin differential amongst products and end markets in MP? I'll answer the second part. Okay. You can answer the first part, Kieran, about the growth. We provide segment margins overall segment margins for the MP segment. All of the businesses within the MP segment are solidly profitable. Obviously, it's an average. Some are more profitable than others, but all of the businesses in the segment are solidly profitable. There is a variation because it's a segment average. Kieran, do you want to talk about the growth? Yeah. Look, firstly, we expect all the verticals to grow, right? Invariably there are going to be different growth rates in the verticals. I mentioned you heard me talk there about the environmental one. Like we do believe that that'll grow faster over the course of the next couple of years, not just because the macro trends towards more environmental, but remember, it's actually our smallest segment, right? We have real good opportunities there to grow that into something significant. Hi, David Raso from Evercore ISI. I was curious on the margin growth over the five years, about a 19% incremental over the five years. I'm just curious, given it's a relatively modest margin improvement baked in. Is that a heavy investment cycle you're looking at? Is it to the question of mix, maybe a little bit where you see the relative growth? Yeah, I'll jump in. I think it's a combination of both, David. Some of the businesses that are growing the faster have the lower margin right now, so there's a mixed aspect to that. This is a business that, you know, it's been consistent. We like the starting point of where they are. We have an overall target of 25%, but there's some businesses that have a great starting point. Trust me, we'll continue to push, you know, Kieran hard, but we think in that 20% range, given the combination of mix and investment, is a reasonable, you know, forecast for the team, and we'll be pushing them. We think that's a good starting point for that forecast. Two more specific questions. Yeah. The India pick-and-carry crane market. I mean, Franna's dominant in Australia. The size of the Indian opportunity, can you help us with that? Secondly, on the material handling, I mean, the crushing and screening, the opportunity for contractors increasingly getting to that business, are they going to your specialty dealers or is there a distribution issue you have to address to make sure you tap into that opportunity? No. Well, I'll answer the second bit on the contractors, right? That market expansion for want of a better word, right? They are going to our dealers, right? Because again, the dealers provide knowledge and application, specific knowledge that is really, really important. And again, I always look at the analogy of any competitors that we've ever had that have tried to sell direct over the years, it has never worked for them, right? Yes, the dealers are expanding it, are necessary to expand to those contractors. Also, which is another big factor, which is why I believe we're fairly strong in mobile crushing and screening. A lot of our dealers run rental fleets, right? That allows a lot of the contractors to try machines. You know, if they've got a specific job and they rent them for. Now, when I say short-term, it's not rented by the day, you know, minimum terms are typically a month. That allows them to try and see what they can do with the crushing and screening and how, you know, the economic advantages that that can create. A big part of our strategy is ensuring that our dealers have rental fleets as well for the product. The first bit of the question was what? India. India. The size of the market for our type of pick-and-carry cranes. It's obviously a huge market. Right. Well. Well. What market segment... There's 2 aspects to pick-and-carry market, right? To give you some context, the Australian market for pick-and-carry, we believe is about 300 cranes a year, of which we have approximately 90% of the market. The market in India, as I mentioned, is approximately 9,000 units a year. Of those 9,000 units, half of them are effectively a modified, like a backhoe loader with a pick-and-carry crane on the front. That's known in the industry, and I'm not joking, as the unsafe crane, right? The unsafe crane. They're actually getting banned. A lot of the government jobs now are banning these unsafe cranes. For those of you who've been to India, they're everywhere. You drive down the road. I was in India in November, left the hotel to the factory, 45 minutes, I counted 50 something cranes of the pick-and-carry cranes just along the road. Those 50% of the unsafe crane, that market's shrinking and customers are now buying the safe crane, which is effectively the Franna style design. However, also the price points are very different, right? The India price point versus the Australian price points are very different. The technologies are very different. The crane in Australia goes down as an on-highway crane. It can travel at highway speeds, you know, 80, 90 kilometers an hour. You know, the transmission, the axles for that. In India, they don't, right? They're a very, very basic crane. If you're asking me the size of the opportunity, it's in the hundreds of millions, probably. Given the composition of the market, big revenue, but I shouldn't assume the same very high margins that Franna. That's the greatest assumption. Yes, don't assume Franna margins in India. Right. Okay. Yeah. Thank you. I asked him for that, but I don't think he's gonna deliver that one, David. Right. Yes. Hi, good morning. Jerry Revich. Hey, Jerry. Kieran, you know, with the margin performance that your business has delivered over the past five years, you know, as John likes to put it, you've earned the right to grow here. Can you just calibrate us on what the profile of acquisitions look like that you're looking at? What proportion increase your wallet share, if you will? What's the multiple? What's the margin profile compared to the Terex profile today? I know it's gonna be a wide range, but what makes sense within your portfolio? Let me, let me answer the first part, and you kinda talk about the areas. Jerry, we'll talk a little bit at the end in terms of capital deployment. We'll get a slide in terms of capital available for deployment. We'll be disciplined in terms of multiples, reasonable multiples, they vary by market segment. You know, it's probably in that 9%, 9x range, I'm sorry. You know, kinda if you're doing your math ±, is what we're looking at on the acquisition side as you model things. Kieran, you wanna talk about some of the specific areas that you're most focused on? Look, I mean, a bit of a theme. Hopefully, you see the theme through the presentation was we look at logical adjacencies, right? Adjacencies that we can either leverage because the technology is not that far from what we already know or application knowledge or some of our channel knowledge, right? We look at logical adjacencies. Look, whilst it's critical that we grow all of our verticals. Again, we have, I must stress this, we have organic strategies that we're implementing, for example, in our Fuchs business, we will enter this year now into the large port, but we did that organically, internally, right? We designed products, right? We look at our ability and speed as well, which also informs some of our acquisition targets, right? Whether we could do it internally, right? Whether there's people available, right? Whether the right people are available, their geographic position, et cetera. Look, I would be very, as John pointed out, while we're looking at growing all of our verticals, we think there's opportunities in concrete, we think there's opportunities still in crushing and screening, although our position is pretty dominant. Then in addressing the environmental segment, I think it's in my view, a lot of our focus will be focused in that area. Okay. Super. Follow up on across your end markets, can you just talk about where, from a cyclical standpoint, you're most optimistic about there being room for additional upside off of 22 levels when you look at all the end markets, that you folks touch in MP? Well, probably back to the sort of the, one of the key macro drivers is the circular economy and the sustainability. Also stressing again that that's a, really is a cross-cutting, right? Everyone automatically thinks it's gonna favor our environmental vertical because that's what we call it and it's directly involved in waste. You know, the whole, the shift in aggregate production from recycled aggregates really positions Terex in our MP. Given the mobility, given our heritage, that really positions Terex, I believe, very strongly. Look, I am very bullish in the aggregates and the environmental and even in material handling. I mean, a large a lot of people think that our material handling is only about scrap. Scrap's important, right? Scrap as a constituent part of making raw steel is growing anyway across the world because it's the most environmentally friendly way of making steel. We've working hard on diversifying our Fuchs business as well, you know, in the waste handling, in the forestry and timber, and then as I said, in the port as well. Look, we think there's multiple opportunities. Hi, Jamie Cook from Credit Suisse. Yeah. Go ahead, Jamie. Yeah. Just on the 7% CAGR of the macro g oals, that doesn't seem heroic given how the business has grown historically. What do you guys assume in terms of, you know, you talked about this segment's been successful introducing new products or market share gains, or like the pick and carry market in India. I'm wondering if that would all be incremental. Like if we were successful there, could that be incremental to the 7% target? My second question is, can you just talk to the pricing strategy within this division historically when you're going after price, is it just there to offset inflation or are there opportunities to get price because you're offering, you know, clients more value-add solutions? Thank you. Do you wanna do the... I can do the price one if you want. Yeah, do the pricing. Look, this last year, right, we've been very public and very clear that in and in the inflationary environment really over the last year or 2, that we were very open and honest with people say that we would pass on the price. Any inflation input costs, our strategy was to pass on the price. Look, I think broadly speaking, in the main, most of the industry has been relatively disciplined. In doing so. Again, you get a couple of outliers. Some of it's around timing, et cetera. Look, that's been a clear part of our strategy. In terms of, look, across the business, we analyze lots of things. We analyze market positioning, we analyze, you know, competitive, we analyze how effective our solutions are. That informs we've a, what I would call a flexible pricing strategy given the nature of the portfolio. Built into that assumption, Jamie, and I would say this is, you know, kind of company-wide. We don't have a built-in assumption that we're gonna, you know, it's price cost neutrality through the forecast is basically, you know, our underlying assumption that we're not gonna drive significant margin expansion as a result of pricing actions. Kieran on the MP side has been very dynamic in our AWP segment. It's taken us a little bit longer, but we've gotten to price cost. You think longer term, we think more price cost neutrality, not necessarily driving margin expansion, you know, with the pricing lever. Obviously, we'll pull that if we can, but that's not the underlying assumption. In terms of the growth rate, you know, and Kieran and the team's done a really great job, you know, over the, you know, previous and going forward. Is 7.5 enough, not enough? I think what we looked at, Jamie, is if you looked at we kind of put out the market forecast for the different verticals, and we're trying to say Kieran historically has driven growth faster than those market verticals. If it's 4, we think we should be something north of that. If you aggregate all those up, we end up being at 7.5%, which is faster than some of the underlying demands is. That's the nature of the forecast by business. In his world, it is by business, it's by product line, and, you know, we wrestle with it. Yeah. We have vigorous debates, on where it should, but as we look out forward, given the things that we have in flight, we think that's an absolutely achievable objective for this team based on what they've historically done and based on the market we're going forward. I'd love to tell you if we can do better, but that's what we've laid out for now and we'll drive hard to get there. That actually concludes all the time that we have for our question and answer at the moment. Did it at the end. We'll have question, we have 3 questions we didn't get to, when we start the Q&A, we'll go with the 3 questions that didn't get addressed. Okay? Absolutely. All right. We now have a 10-minute break. You guys have till 11:40. Please feel free to get some food, some water. We'll rejoin in a few minutes. Thank you. Good stuff. Okay. We everybody get a chance to get some beverages and return to their seats? We'll go ahead. Welcome back. Before I run a video, I wanna introduce Simon Meester. Simon is the president of our Genie business. Simon's been with us a little over 4 years, Simon brings a vast knowledge from the original equipment side, but he also had a stint on the supplier side into the OEM world, that's really helped us over the course of the last couple years. He truly is a global executive. He hails from Holland or the Netherlands, whatever choose we wanna do, he's lived abroad everywhere. He's lived in the Middle East, he's lived in India, he's lived in China, now he lives in the Pacific Northwest. Please, roll the tape, and Simon will follow the tape. My name is Simon Meester. I am the president of Genie, based out of Bothell, Washington. Genie is a $2 billion company with factories in five locations, 4,000 team members, roughly, we have been in the industry for a proud 55 years. What Genie enables is to work safely at height, to keep people safe at height to handle material safe at height. Terex has been a very strong advocate of Zero Harm for many years now, not just because we think it's a basic human right. We also see that the safest sites have the best quality products, have the highest engagement, have the best customer satisfaction, it goes all hand in hand. Quality by Design is not just the product, it's the quality in everything we do. It's the quality in which we make decisions. It's the quality, of course, of our products, but also the quality of our services. It's really a philosophy that cuts through everything we do. Our products are not built by individuals, they're built by teams. The strong team spirit still lives very much in our culture today. We have one of the widest, deepest, broadest portfolios in the industry. That's why there's so much upside for our products, because there are still immature markets that haven't even started adopting our products. 55 years, we've been innovators, we've solved customer problems. That was at the center of our journey. We've now coupled it in recent years and really transformed ourselves in what I call a lean, mean fighting machine. We've done a lot of cost out. We've done a lot of process improvement, become a lot more agile in the way we operate. It's safe to say that we've made ourselves a lot more predictable in terms of cash flow generation and earnings throughout, you know, the cycles that our industry is known for. We will continue to invest in leading the aerial industry on innovative quality products that give a strong return on investment for our customers. At the same time, we have been investing in the expansion of our footprint. Our new product development effort is only going to ramp up in the next couple of years. Electrification is one of them. We wanna make sure we keep leading the market in electrification. At the moment, around 70% of our portfolio is electrified. Secondly, digital is not just transforming the job sites that our products are working on, it's also transforming the way Genie is operated and the way Genie runs today. We aspire to continue to be the most admired aerial brand in our industry. The future is very bright, in terms of demand for our product. We will always continue to push the envelope and push ourselves to continue to provide products and solutions that help solve problems for our customers. All right. good morning. yeah, John, I was a little worried when you said the Netherlands, that you were gonna bring up soccer and immediately make me the least popular person in this room. But anyway, yeah. Again, welcome and thank you for your time and your interest in Terex. I'll be talking about the Genie business in our portfolio. I'm really gonna try to, you know, emphasize three key messages in my presentation today. First of all, I did say in the video, we are very optimistic about our markets and about our out-outlook. That's message number 1. Secondly, we made some significant changes to our cost structure to improve our through cycle margin performance. Lastly, you know, we build a, we believe, a strong foundation and framework to build continuous margin expansion going forward. I'll start with our end markets. You know, we serve a very diverse mix of end markets. You know, probably, you know, on your way in this morning or when you drive through the city or when you go to the airport, you see our Genie lifts working everywhere. Typically those applications are the applications you would expect, right here on the left-hand side. You know, construction, infrastructure, maintenance. However, if we've learned anything from the pandemic in the last couple of years, is that our customers continue to find new applications for our products. If you think about, for example, the online streaming industry that has really taken off in the last 3 years or so, all those movie and TV productions intensely use our Genie lifts as well. Also data centers, warehouses, you know, they're built by our lifts, they're operated by our lifts, and they're maintained by our lifts. So our markets continue to, you know, grow in terms of diversification. Today, we sit at roughly $15 billion in addressable market, but it continues to expand and diversify. The second message I have for this slide is, as probably most of you know, for several decades now, our main go-to market channel has been rental. That has been really a win-win for our industry. When you think about it from an end user perspective, you know, they get the right product at the right place at the right time. You know, our rental customers get a very versatile product that they can rent out in multiple applications, but also, you know, yield attractive returns. Then Genie gets a very strong go-to market channel, you know, with a large channel that continues to push our products into additional addressable markets. This is my first message today, is that we're very optimistic about our outlook. We see significant upside, and it's really a function of 3 variables. First of all, it's straight up fleet growth. You know, John spoke this morning about the mega trends. If you think about infrastructure investment, the CHIPS Act, you'll hear more later this morning about, you know, grid modernization. All those investments will yield to straight up fleet growth for our rental customers. Secondly, and that's what this chart is trying to illustrate, is really an amplified replacement cycle. Our industry has been constrained in the last couple of years, and as such, our customers were forced to age their fleets. We're still constrained today. It's gonna take some time for the industry to come back to more historical trends in terms of, you know, where fleet ages sit typically. That will lead to an amplified replacement demand for the next couple of years. The third variable is really around adoption. If you think about China's really taken off in terms of demands in the last 5 years, has grown exponentially. Now we see markets, large economies like India, Indonesia, Argentina, that also start to adopt our products and move from the more conventional ways of working at safely at height to the more agile, versatile, safer, more productive way of working at height that our products enable. All in all, we're very, very optimistic about our outlook. Yeah, we've been in the industry for 55 years. We were among the ones that created this industry. It's a very successful story. As I'm sure most of you know, it literally started out of the back of the garage of our founder in 1966, where he developed the first prototype to lift material up, you know, into this global company that we're today. A global business, multi-billion dollar business. You know, we're still the number one and number two in most aerial markets around the world. With a true global footprint. You know, we manufacture in the U.S., in Mexico, in Europe, in China. We've been in Asia for 30 years. We've been in China for 20 years. Also with a true global talent pool. You know, with very talented team members in China, very large team member pool in India that John talked about this morning, Europe, Mexico, and the U.S. A true global, competitive, diversified, business today. What are our competitive strengths? If you would have to summarize them, they're really, you know, you can bucket them in three different categories. First of all, our brand. You know, having been in this industry for 55 years, we've grown with our customers. Our customers are very familiar with our products. They know what to expect. You know, they also known that, you know, the Genie brand is associated with a quality value proposition. That means attractive residual values, which is obviously an important parameter in the rental industry. Secondly, over the last 55 years, you know, we've developed deep and extensive expertise in validating and testing, you know, our products. After all, we are in the safety industry, we're applying technology, we're seeking maximum productivity, but never losing the prime objective is to keep people out of harm. Striking the right balance between applying technology and productivity and enable safe work at height, you know, is not something that we think is easily replicated in our industry. That's a, you know, competitive strength that we have that no one else. Secondly, is our products. I mentioned in the video we're among the widest, broadest, deepest portfolio in the industry. You know, if you think about anything that needs to be lifted from 10 feet to 180 feet, you know, something that needs to work outdoors or indoors, needs to work on rough terrain or smooth concrete slabs, you know, powered electrically or through a hybrid solution, we have all flavors in our portfolio. The second piece around product is that we do operate at the cutting edge of innovation. We've, you know, for example, we electrified our first boom lift in the 80s, you know, almost 40 years ago. You know, we've also obviously developed, you know, deep expertise around optimizing total cost of ownership for our rental customers, which is a big deal in our industry. Today, about 70% of our portfolio is electrified. We continue to push that forward, as I'll mention later on in my presentation. The last piece is around our support system. I mentioned that we have a global footprint, a global reach, which also applies to our parts and service footprint. You'll find, you know, parts distribution centers all over the globe. You'll find our service centers all over the globe. I'm particularly proud of the Genie team that I mentioned, that our customers were forced to, you know, age their fleets during the pandemic. You know, our team was able to keep our parts availability over 91% and our first call resolution over 85% during the pandemic. That shows our strength, you know, when it mattered. Last but not least, in terms of competitive strengths, is our fleet of connected assets. We introduced a connected solution, almost now 5 years ago. Today there are more than 55,000 connected Genies in the field, providing actionable feedback to our customers, allowing our customers to use that and turn it into value for their customers. Going into the pandemic late 2020, we did realize that we had to dramatically, you know, improve our through-cycle margin performance, and that's my second message for today. In 2021, we took more than $90 million of cost out of our cost structure. That really became, you know, the foundation of the work that we started in 2021. That became the foundation of how we work going forward. That's how you see, you know, how we basically took the cost out, improved through-cycle margin performance, and how we started to transition from how we used to work to how we're working today. It's, you know, to give you some context, you know, on how and where we took the $90 million cost out. First of all, around strategic sourcing, we are a global business, global footprint, global supply base, which means that, you know, we explored opportunities to improve what we buy, where we buy, and who we buy it from, in order to drive cost out for our business. Secondly, we do have a global manufacturing footprint, so we were able to further optimize the mix of our assembly lines in our product moves, and we're able to move from high-cost to low, low-cost country manufacturing. The third piece was all about a strong bias against fixed cost and fixed expenses. Obviously, if you want to improve your through-cycle margin performance, that's where you look. You look into reducing your fixed costs and your fixed expenses. It started to drive a new way of running our company, on how can we run our company more agile and what I call in our video a lean, mean fighting machine, going forward, which would keep a continuous focus on through-cycle margin performance. Last but not least, tied very much to the third point here, is we optimized our SG&A structure and really took a very hard look at all the critical processes in Genie and how we could run our company smarter with a more optimized SG&A base. That really led us from, you know, the legacy way of working to a transformed Genie 2.0. We wanted to make sure that 2021 didn't become a one-time-only type of action. So we started to think about, okay, so we were able to take $90 million of cost out. How do we make sure that, you know, from a continuous improvement standpoint, that becomes our MO going forward? We wanted to make sure that we continue to push ourselves every year in terms of strategic cost outs. Secondly, we also wanted to make sure that we have clear intrinsic line of sight to continuous margin expansion. Last but not least, obviously, you know, we also wanted to make sure that we kept pushing our top line because we have a lot of tailwinds. We wanna make sure we keep working the top line as well. That's what became this particular framework with right at the heart, Genie – Quality by Design, as I mentioned in our videos, really a quality mindset around everything we do, and very much aligned with the framework that you've seen a couple of times already this morning in terms of execute, innovate, and grow. I'll take you now through each of these 3 buckets and give you more context on how that helps with the 3 points that I have been making so far. First of all, execute profitably. It's really a story within a story. You know, I mentioned 2021, I mentioned strategic cost out, so we really kinda created a continuous mindset around strategic cost out and turned that into our standard work. A standard work became our operating system, and that's really, you know, our cadence going forward. Every year, we push ourselves to do more with less. It's really all around process excellence. If you think about it, you know, we're trying to, you know, optimize every single process in the business by either creating more value, do it more cost productively, or basically just do it faster. I'll give you one example here. This is an example of our digital manufacturing, you know, roadmap. If you think about it, today, you know, we apply work instructions to the shop floor, to the people that actually build our products on our assembly lines, in a digital way. So it's a real-time connection to our shop floor to, you know, pass work instructions on. If you think about, you know, how we've combined it with the back end of the house in terms of quality, our quality management system, and the feedback we get from our markets, from our customers, and from our distribution centers, you know, on what's working, what's not working, and what needs to improve. Now we have a real-time data flow in place between, you know, getting feedback on what needs to be improved and applying it straight to the shop floor. Think about how you can run that process much more agile, you know, with a lot less resources and much faster and with better outputs for your customers. The second piece of our framework was all about innovate. Now obviously, we have a rich history of 55 years of being serial, purposeful innovators. As such, you know, it obviously pushes our top line performance. As such, we're very excited with the new product development that we've got going on and that we expect to bring to market in the next, you know, months and years. Expect to see more from us in terms of electrification, in terms of hybrid solutions, and in terms of digital solutions. The point I wanted to make on this slide is that we also apply innovate to, you know, how can we help ourselves help customers? As an example, as you develop new products, you have an opportunity to also optimize your value streams. As you optimize your value streams, for example, by, you know, customizing less, standardizing more, and reducing your cycle times, you improve your safety, you lower your cost, you improve your quality, but also you improve your availability for your customers. At the end of the day, you apply innovation not just to develop new products to add value to your customers to drive the top line, but you also develop new products to optimize yourself to help your customers indirectly. The second piece around innovate is our announcement of our Acculon partnership. The Acculon team really brings 2 key benefits to the table for us. First of all, I'm sure everyone is acutely aware that the entire capital goods industry is currently looking for clean energy kind of solutions for their portfolios. They're all looking for ways to test and certify and bring that to market as fast as possible. That's an expertise that Acculon brings to the table for us. They have deep expertise around testing and validating and prototyping battery management system and battery chemistries. By having that partnership, we believe we have a faster, you know, way to market. The second benefit that they bring to the table is their engineering know-how, especially around battery chemistries, battery integration. If you think about, you know, where mineral availability is going in the next five years, what is going to be the most cost-productive way of building batteries in the next five years, they help us navigate through that very dynamic playing field that's going on right now. We're very excited about the Acculon partnership, and we believe it will continue to, you know, help us to stay in the lead in terms of electrification as we are today. The third piece around innovate is our new facility in Monterrey, and we're very excited about this new facility. It's a very large facility. It's 1 million sq ft. As a matter of fact, the picture you see here, that's almost how it looks like today. We're almost ready. We're actually moving in as we speak. We think we will push our first products out in the, you know, late second quarter of 2023. And that's a straight up, you know, direct investment that will lead to, you know, 200 basis points of improved margins. That's a very intrinsic, you know, investment and we believe that our footprint is a competitive advantage to us today. With this investment, we'll continue to expand on that competitive advantage. The point I wanted to make here is, you know, besides a direct link to margin improvements, the reason we have it under innovate, it's not just a copy-paste of our manufacturing footprint. It's actually a facility that is also going to take us to that next level of manufacturing excellence of where we think manufacturing needs to be in the next 5 years. Obviously supported by Genie designs, Genie quality, Genie processes, amplified by a very strong local management team that we're very proud of that we were able to recruit that team. We're really building that facility into a, you know, state-of-the-art facility on where manufacturing is gonna be in 5 years from now. The third piece of our framework is all around top line growth. I mentioned, you know, that we're the number one, number two in most of the aerial markets. I mentioned the tailwinds that we're seeing in our end markets. That obviously leads to a lot of tailwinds for our top line. I mentioned our installed capacity in Monterrey. I mentioned our new products, and I also mentioned how we believe that working with our existing channel, we still have a lot of upside in terms of finding new applications for our products. A lot of upside in terms of top line. The second piece here is, you know, what made Genie great over the last 55 years, is that we always kept the customer front and center. We're a very customer-centric organization. We wanna make sure that we continue to invest, you know, as more technology becomes available. Our customers are very, you know, are evolving quickly and rapidly, and we wanna make sure we keep evolving and developing ourselves as well to make sure that stays front and center. That leads me to my third and final message around continuous margin expansion. I hope you recognize I spoke about Monterrey, I spoke about the execute profitably, the continuous strategic cost out, and I spoke about innovate around value stream optimization. All three buckets are tied to the framework that we laid out. I just wanna say, this is not another slide that just shows nice buckets with a nice number that leads to 14% OP. I want, you know, behind each and every item here on this chart, there are dozens of projects that are resourced, that are scoped, that are timed out, that are risk mitigated, that are assigned to team members. We have literally 4,000 team members that know exactly what they need to do over the next 5 years in order to get to where we need to be. We feel very confident that we have the line of sight, and that we have the projects in place to get to this level of performance over the next couple of years. That leads me to my last and final slide. We are a global leader, well-positioned for compounded top and bottom line growth. Strong tailwinds in our markets. We have taken significant action in 2021 to improve our through cycle margin performance. We build a continuous improvement framework around us, so we keep pushing ourselves. We continue to invest in our competitive strengths. Being the number one and number two in most markets, it means we have scale, which is a competitive advantage. I talked about the footprint, and last but not least, about the clear line of sight and the framework we've put in place to continue to push customer value and continuous margin improvement going forward. We're very excited about our journey. With that, I think I'm gonna pass it over to John. Thank you, Simon. I think we're gonna roll a quick video on Terex Utilities, and then I'm gonna cover the utility segment. Can you roll the video? We are excited about our utilities business 'cause we think it's gonna grow substantially. We helped to create the industry. We're an industry leader in digger derricks and insulated equipment. So for the last 70 years, we've brought new technology to the marketplace, and we're continuing to do that as we go forward. What is so exciting about the utilities business is the level of investment that's required to achieve the net zero objectives, and we're right in the middle of that. The utilities business is at the core of electrification, and we've made substantial investments to take advantage of the growth that's coming in this business. You know, we invested in our Watertown facility. It's a world-class 500,000 sq ft manufacturing facility. We've invested in technology and new product development. Our Viatec investment enable us to bring to the industry, the first all electric bucket truck that is now in service in the industry. We're also investing in the service capabilities. We now have 21 service centers around the United States that support not only Terex Utilities competitor as well as our Genie products in the marketplace. Investing in manufacturing capacity, technology, service capacity, because the growth is going to be there, and we're gonna participate in that growth as we go forward. Our investment in our manufacturing facility, we anticipate getting improved productivity as a result of that investment and the service centers that we've invested in. Over time, we do believe we can grow the top line and expand margins in our Terex Utilities business. You know, our utilities business is an industry leader in insulated technology. We operate around high tension power lines that are activated, and so we bring to the market a safe way to do that. We also bring to the market in terms of 5G. If there's any 5G where a repeater tower is gonna be used in and around electric lines, they have to use the type of equipment that Terex Utilities provides. We're excited about the opportunities outside the United States for utilities. 1 is China. We're excited about the opportunity in Mexico. We think there's a substantial opportunity for growth. One also believes that there's gonna be potential M&A activities in and around the utilities space. We're looking at near adjacencies that we think we can grow into. We're excited to drive growth for this business going forward. Okay. Again, our utilities business, full line of equipment, and you heard me say it multiple times in the video, but I think it's important. It's in the insulated side. We like the industry structure. There's very few companies that can provide the insulated equipment that's required. Again, insulated equipment's required to operate in and around high tension power lines. The other message here is it is a big business, we'll talk about growth and that the need for the net zero and electrification, that we think that growth is gonna be there as we go forward. The slide says 6%. That, you know, we would actually believe that they could grow more than that as we go forward in this industry based on investment, that's the current market forecast. We think there's opportunity for us to go above that as we go forward. In terms of the advantages we have is, again, leader in technology, manufacturing footprint, and then the other opportunities we think we see here is growing outside the United States. Again, this is predominantly a North American-based business. We do have some operations in China. We think that can grow. Again, when we speak about M&A, we think international growth opportunities could present themselves in this business as we go forward. The other part that's unique about this business is our service platform, and it's parts and service, but the biggest part of this is service. In order to compete in this industry, you need physical infrastructure on the service side. We now have 21 service centers across the country, and when I say compete in some of the product lines, and I'll talk about investor-owned utilities, if you don't have a physical service center in their service territory, you can't compete for that work. We've been investing in our service territories across the country as well. Electrification, what needs to happen? There's substantial investment that's required from transmission to distribution. Obviously in generation, we don't play as big a role in generation. We play a role in how the power gets from the generation to the ultimate end customer. Again, you see the CAGR in the Infrastructure Bill, there's about $65 billion that's been allocated to electrical grid and electrical grid improvement. That starts with installation of new wire. Speaks to the upgrades, smart grid, a lot of investments required there. Last but not least is around repairs. I'd encourage you, whenever you have a storm and you lose power in your area, if you do, you know, go out once it's safe and find the service teams that are putting your power back up, thank them and look and see whose equipment it is. We always like to do that. It's, in terms of making people feel good, there's nothing better than seeing a Terex utility truck you just had your power restored at your home. I've had the opportunity to do that, unfortunately, multiple times here in the last couple of years. Execute, innovate, and grow. On the execute side of safety here, the challenge for our Utilities team is not just manufacturing safety, but we have 21 service centers and over 60 on-the-road service technicians. Safety is a big opportunity for improvement for this team as we go forward. You heard Simon talk about strategic sourcing. Utilities was part of our overall strategic sourcing initiative. Of all of our businesses, they've been impacted the most by the supply chain disruption. We need to drive, and we'll drive improvement in that. When we do that, we'll see the improvement in the factory of throughput that we thought we would get when we built the plant. When we do get the materials, we are getting the throughput that we anticipated. On the innovation side. I'm sorry. Excuse me. Let me just go back to the operating system. Similar to the other two businesses is driving the improvement in the operating system to consistently deliver on the commitments that we make, and there's an opportunity there as we go forward. On the innovate side, we talked about the all-electric bucket truck. I'll talk about that in a second. That's a big part. Electrification of the electrical equipment is a big opportunity for us as we go forward. The digital offering. I'll give you a simple example. In the midst of the pandemic, obviously, utilities were key suppliers. None of our Terex businesses shut down, our customers couldn't get to Watertown to inspect their equipment. We had to come up with a digital way, you know, configure, price, quote, but then we have customized equipment that how do you inspect and ensure the equipment is what you ordered, and then it could be shipped. Historically, our customers would come and do their inspections on-site. Literally, we had to create a digital system to enable customers to sign off on their units, so it could be shipped without their physical presence. Just an example of how we need to drive digitization through that interface with customers back in, as you heard Simon say, back into our shop operations. From a growth standpoint, a couple of key markets here. We're number one or two in this market. There's a very large player that's clearly number one across the whole space. Within the contractor business, we enjoy a strong position, and we think there's opportunity for us to grow in investor-owned utilities and public power. That's not a segment that we historically serviced. And now with our manufacturing capability, our engineering capability, and sales capability, that's a market that we think we can service as we go forward. Recurring revenue is important to this business. On the parts and service side, again, large percentage of service. One of the pro-profit driving opportunities for us is to improve the profitability of the service side of this business as we go forward. We currently manufacture or assemble booms in Changzhou, in outside the Genie facility in China. That was a growing business. With everything that's occurred with the pandemic, it slowed. Over time, they're continuing to adopt live line technology, live line work. Where that happens, we have an opportunity to grow. Countries have to adopt the willingness to work on live lines in order for our insulated equipment to provide the value proposition that they're looking for. The significant investment in Watertown, and I don't know, I'll just say that we had 12 or 13 buildings, and I'll be kind to call them buildings. We knew we couldn't get to where we needed to go unless we made the investment. At the time, it was the largest single investment that Terex had made in a manufacturing facility. It's there. We got it up and running, launched production during the middle of the pandemic, and it is a world-class physical facility, and we're in the process of making it a world-class manufacturing facility. We also have 21 service locations. We opened 2 new service centers across the country this year. Service centers service not only Terex Utilities, but we service competitive products as well as you saw in the video there, you know, Genie products and other aerial products. That provides the opportunity for us to expand the service centers as we go forward. As we increase the absorption rate on these service centers, that's gonna help to drive profitability in the new centers that we've opened here recently. Purposeful innovation is critical to this business as it is to all of our business. The first piece that we're incredibly proud of was the work we did to be a first mover and bring the first all-electric bucket truck to the electrical industry. I encourage you, one of our great customers, Con Ed, has been kind enough to allow us to utilize their vehicle. It will be parked out front of the NYSE here from 1 to 3 o'clock, please come by and take a look. Why is this important strategically? Well, 1, you know, all customers have to drive net zero. The electric companies have big net zero objectives. In all aspects of their business, they have to look at how they can use electricity, and this is clearly 1 example. Strategically, what this demonstrated for us is we made an investment in a company called Viatec. It's electronic PTO, you know, a startup operation, and they had other customers. We were working with them to incorporate their technology onto our trucks and they were looking for capital. We made the capital investment in this business. The important thing for us is it gives us an opportunity to help lead and drive their technology roadmap, and we gain access to their technology that we can put on our equipment. We were able to do this in the matter of months. We worked with Viatec, we worked with Navistar and our engineers to create the industry's first all-electric bucket truck, and frankly, we're at least 1 year ahead of the competition in this particular space. We'll look to extend this offering across the product portfolio as we go forward. The next one that I'm incredibly proud of within the segment is you look there in the middle, and as Simon said, the Genie boom lift. It looks like a Genie boom lift, but it's not. It's an insulated Genie boom lift. We're the only ones in the industry that can do this. How did this happen? One of our great customers came to us and said, "Hey, listen, we really would like to be able to use lifts in and around our substations, but they're not insulated. Do you think you could help solve that problem?" Yes, Genie engineers, utility engineers worked together, working with the customer, come out with the first insulated boom lift in the market. We don't know how big that segment could be, but we know we addressed the customer need, we solved the customer problem, and our joint engineering effort enabled us to bring something to market that no one else can do in-house. Finally, on the digital tools, we talked about that, enhancing that digital experience to the customer, taking it back inside our organization. This business, we've got a brand new physical facility. We have an ancient ERP system. In 2023, this business will be integrated into what we call TMS. It's an Oracle-based ERP system that we desperately need. We decided we didn't need to build a new building, move, and an ERP all at the same time. So it'll be an opportunity for the team to excel this year with an ERP implementation. In terms of the growth in this market, you know, first it is around the tailwinds of what's needed to invest in the electrical grid infrastructure. You know, my personal perspective is I think some of the estimates are understated. When I talk to electricity companies, they always talk that they're going to need more going forward. We think there's strong tailwinds there. We can grow in market, in a market segment that's IOU and public power that we didn't participate in to any extent. We are being successful. We modified our sales approach. We have the engineering approach now, the manufacturing approach, and we're booking units and for these customers out into 2024 and in couple cases into 2025. That tells you the demand and the lead time that's out there in that segment. Obviously, we've got to work on lead times, but frankly, right now, those are competitive lead times in the industry. Driving improvement in recurring revenue expansion and driving the profitability of that part of the business up as we move forward is a big opportunity with the 21 service centers and the 60 on-the-road service technicians we have. Global adoption. You heard both Simon and Kieran talk about global adoption. What we need to see adoption here is countries adopt live line practices. This is an example in India that potentially could happen. China was moving to live line. The pandemic has definitely slowed that down, and we'll see if that picks up as we go forward. What we look to countries that are changing their practices, and then we have the opportunity to deliver our insulated solutions as we go forward. With that's our utilities business. Again, right at the heart of that sustainability mega trend called electrification. The good news is we made the investments ahead of time, so now we have the physical capacity that we need to drive that business going forward. A real opportunity to drive top line growth and margin expansion within the utilities business, which is reported within the AWP segment. AWP segment, Genie and utilities. I'm gonna turn it over to Julie. Julie's actually, I guess, the newest member of our team, but she's not so new anymore. She's been here almost a year, and she's a great partner as our Chief Financial Officer. Over to you, Julie. Thank you so much, John. Good afternoon, everyone, and thanks for being here. I'm really excited to talk about all the opportunities we have ahead of us. To start out the presentation, I just want to say that we're reaffirming our guidance, our outlook that we presented to you in October with our Q3 earnings call. Reaffirming that. We'll give you our 2023 outlook at our February earnings call when we review our 2022 year-end results. I thought I'd give you a little bit of color regarding what we're expecting and what we're seeing for 2023 right now. We have record backlogs at this point in time, and we have strong customer demand. Because of that, we think of 2023 as a growth year for Terex. Despite all of the crosscurrents going on, whether that be geopolitical uncertainties and volatile interest rates and rising exchange rates and rising interest rates, you know, we believe that this will be a growth year. When we think about supply chain, the supply chain disruption, although we see on-time delivery for our suppliers improving slightly, it still takes lots of parts to ship a machine. It hasn't improved enough to say we still don't have supply chain disruption. Similar to 2022, 2023 will be a function of what our supply chain can provide us. We have the demand, we have the customer demand, and we believe at this point in time that 2023 is going to be a growth year. Now let's talk about our five-year financial targets. I want us to talk a little bit about, you know, being the new CFO, what a privilege it is to be the Terex CFO, and I started that role in January. I was thinking about, well, what are the things that we want our investors and all of you in the investor community to understand about Terex, and what are our key messages? The first thing you've heard all of us talk about is the transformation, and Terex is a very different business than it was in 2015, 2016, and I'm gonna show you that in a bit, a very different business. We're transformed. We're not done. We're transformed, and that transformation positions us for profitable growth. The second thing I wanted you to know, and I want everybody to understand, is the unique opportunity we have to profitably grow in the MP business. That business, strong financial performance. The great chart that Kieran showed you earlier showing his 600 basis point margin improvement and growth. There's an opportunity to invest in that business and to continue to grow and improve the margins. I want you to understand what all the M P business is comprised of and all of those great opportunities. We look to our utilities business. What a fantastic business that is. We have an opportunity to grow that business, the electrification trends and the net zero and sustainability goals that our world has support growth in that business. Our Genie business, Simon and his team are doing a great job. Simon talked about Genie 2.0. That business is different as well. It's more resilient. It's better prepared for any potential downturn, and we expect to perform better in that business. We already are showing that we're performing business and growing margins in that business as we speak. I'm really excited about the future of Terex, and I'm really excited that we are going to have accelerated growth. The growth rates that we're showing you are above market growth rates, so we expect to outperform the market in terms of growth. We expect to more than double our earnings per share organically. That's just organically, and we'll talk about the cash that we're gonna generate, and we'll continue our disciplined capital allocation going forward. Here we talk about our transformed portfolio. What has been done? We divested the businesses that didn't outearn their cost of capital. They were high-usage capital business, low-margin businesses. What happened? Our top line actually has declined since 2015, but our operating profit margins have improved by over 400 basis points. In this time, the materials processing business has grown to represent 60% of our operating income. 60%. We simplified the management structure and simplified the business, and we've been able to take out 340 basis points of SG&A. Our outlook this year says we'll be at 10.6%. Throughout this time, we've more than tripled our earnings per share and our return on invested capital. Our return on invested capital is well above our cost of capital. It's so a terrific job by this management team in transforming this business. As we transform, like I said, we're not done. We'll continue. Because of all the hard work done, it's positioned us well with a strong balance sheet. We have the liquidity to support our future growth. What have we done? We returned $1.8 billion to our shareholders over this period. $1.6 billion in share repurchases, $200 million in dividends. We've been able to reduce our net debt by 56%. We've reduced our leverage. Our leverage today is down 2.1 times, and our leverage today sits at 1.4 times. Other important piece is that we have $600 million of bonds outstanding through 2029 at a fixed interest cost of 5%. We have access to capital markets as we choose to grow, as we choose to invest in M&A and grow the business. I'm really happy to provide you with these consolidated financial targets. We anticipate by 2027, we'll be a company in excess of $6 billion. That revenue growth outpaces the market. We're gonna grow faster than the market. We're gonna have operating profit margins of 13%-14%. Again, margin expansion as we grow. We're gonna double our earnings per share from $8.50 to $9.50, in that range, double our earnings per share and increase our return on invested capital to 25% plus. We think those are fantastic targets, and we're excited to do that and deliver that value to our shareholders. Of course, there's all sorts of, it's crosscurrents going on over the next 5 years, and it's impossible to predict any impact of a geopolitical uncertainty, if there's a major global event. It's impossible to think about timing of a recession and all of those kinds of things. I think John said earlier that, you know, this won't be linear. We think that this is reasonable and attainable and the only thing that can be off is timing from year to year. We don't know the exact investments of when all of the infrastructure investment's gonna happen. We expect to see that in 2023 and 2024. Okay. We think that these are reasonable going forward, and we're excited to deliver this value. Let's look at this by business. What a great performing business is Materials Processing. Kieran did a great job of talking to you about how we can grow this business and the passion that he has for the business. This business has already improved their operating profit margins by almost 600 basis points. During the pandemic, they had 11% operating profit margins. Fantastic. Fantastic. Here we have a 7% compound annual growth rate, a 40% increase in revenues, outgrowing the market, along with margin expansion, growing margins again by another 100 basis points and going over 16%. A terrific opportunity to invest in this business, M&A opportunities in this, and we'll continue to leverage our current operating systems and continue to grow this consistent performing business is going to grow both in volume and expand its margins over this period. Now we'll look at the AWP business. Right? This business consists of the Genie business and the Utilities business. This business is also gonna grow, but it has opportunity for margin expansion. Okay? We talk about what the Genie team did specifically in taking out $90 million of costs, working on their operating system, working on low-cost country manufacturing, working on value stream mapping, value engineering and taking costs out. If they had taken out $90 million of costs in 2020, we would have improved that operating margin to 5%. Okay? You can see the steady growth in operating profit from 2020 to 2021 to 2022, and we see 500 to 600 basis points improvement in that business. That's continuing down on the Genie 2.0, as Simon talked to you about. We're talking about strategic sourcing initiatives. Again, all of the value stream. Again, a Monterrey facility and the related supply chain that comes with Mexico. We talk about the utilities business as well. A great opportunity to grow. That business has been impacted the most by supply chain shortages and chassis and bodies, and a great opportunity to grow that along with all of the sustainability and net zero trends that we have. Let's talk about all of this. We will generate significant cash, and all of the numbers I've presented to you before are all organic. We haven't invested in M&A at this point in time. We will generate significant cash throughout this period. We will have a target of having 75%-100% free cash target on net income going forward. We're gonna invest in our core business. We're not a capital-intensive business, but we'll spend between 1% and 3% of revenues on capital expenditures, improving our facilities, investing in information technology, investing in our people. Those types of investments we wanna make. It's also important to us that we maintain a consistent dividend, and we'll continue that as well. In a moment, I'm gonna talk about some of our acquisition criteria. We wanna grow through acquisition as well. We will generate the cash, and we have the liquidity and the balance sheet to do so. We'll also do opportunistic share buybacks. We absolutely wanna offset dilution, and we wanna return capital to our shareholders. We'll continue to be disciplined. Our target remains at 2.5x net debt to EBITDA leverage through the cycle. Our balance sheet does support the fact that we can do grow in M&A. When you look over here at this chart, here's our 2022 outlook for earnings per share, organic growth to that $8.00-$9.50. On top of that, we believe we have an opportunity to grow inorganically. What will we be interested in? We wanna buy good businesses and make them better. We wanna remain disciplined. We want to make sure that every business we buy is able to be accretive in the second year of ownership after we get all the purchase accounting adjustments behind us. We want to make sure by year three that these businesses can outearn their cost to capital. We want to build on things that are a strategic fit for us and are financially attractive. That could be in our MP business. We talked about acquisitions, and Kieran talked about the things he'd like to do. In our utilities business, in technologies. We believe this. We have a very active pipeline, and we're excited to grow that way too. Oops. There we go. First one to do that. In conclusion, we are really excited about our growth prospects at Terex. I'm really excited to be here and generate these kind of returns and growth for our shareholders. $6 billion plus in revenue, outgrowing our marketplace. improved operating margins, doubling our earnings per share, 25%, you know, return on invested capital. When you think about this, you know, we're gonna have over a 350 basis point, you know, improvement in operating income. Okay. Or operating margins. On the behalf of all of the Terex team members, I wanna thank you for your interest in Terex. Thank you for your support. Thank you for being here and listening to us. Now I'd like to invite Kieran, Simon, and John back up to the stage to take your questions. We gotta. Just real quick, we had everyone go ahead. Sorry. Go with the announcement. I'm sorry. We had a couple questions that went over. We got Tami, Nicole, and there was one on the back, and then we'll do these again. Gotta fulfill my commitment. I said we'd call you in the next piece. All good. Just as a reminder for those on the webcast, you can ask a question via the Q&A box at the bottom. For those in the room, please just wait for the mic to get to you. We're also gonna have the team set up lunch over here for you guys for once the session ends. For those of you who we missed at the end of the last round. Thanks. Nicole DeBlase from Deutsche Bank. First question is just on free cash flow conversion. I think if I remember correctly from the 2016 Analyst Day, the target was over 100%. Why are we going to 75%-100%? Second question is just, if you look at the path of the new revenues that you guys are thinking about through 2027, what does your replacement cycle analysis say about, you know, are we reaching a peak in replacement demand sometime in the next few years? Thank you. So I think- Yeah, I'll take the first one, Simon. Okay. You, you can do it. Take the first one. That, that first assumption back from 2016, we met most of our commitments and exceeded many. That was one we did not. That was on me in terms of my estimate of what the capital was required in the business going forward. It was early on, and I underrepresented the capital that was needed, and I think that's represented in the, you know, the $600 million that we've invested, you know, since that time. I think as we go forward, we're gonna continue to make the capital investments we need. We've got to work on... We made great progress on working capital. As a% of sales, we've gone backwards here as a result of the disruption. We gotta get back on the train of driving working capital efficiency and improvement as we go forward. I think that's the, you know, the two principle. Then the other side is we have growth. These businesses, as you know, they consume cash in the up cycle, and they throw off cash in the down cycle. Hopefully, we're not gonna talk about too much of a down cycle. We're forecasting growth here. There is growth as we go forward on cash utilization. Simon, you wanna- Yeah. On the replacement cycle, first of all, thank you for your question. It's really gonna be a function of supply chain. I mean, we're still constrained today. Customers have been forced to age their fleets. You know, if at the end of the day, we do strongly believe that free markets will eventually balance things out again and we'll be unconstrained from a supply chain standpoint. You know, if things go the way we think will go, we think about 2016, 2017, 2018, all that, all that equipment that entered the, you know, the rental fleets now needs to be replaced in 2022, 2023 on top of that all that, all what was aged. We do see more amplified replacement demand in the shorter term of our window, let's say the next 2 to 3 years. That's under the assumption that supply chain will sort itself out sooner than later. Tami. You have one. Tami, yeah, you're good. Yeah. Hi, this is Tami Zakaria from JPMorgan. Going back to the MP segment, the 7.5-ish CAGR, can you comment on what expectations are, let's say, in the next couple of years versus the outer years? Is it going to grow at a more moderated pace initially, but then as you invest in the business, it accelerates? Is it more or less similar throughout the next 5 years? You want me take it? Yeah, then Kieran can jump in. As we've said, as we look, 2023, we think it's gonna be a growth year, but a year that's constrained by the supply chain. As supply chain, as Simon says, the free markets open up and we get the consistent supplies that we can build on schedule, the supply chains constraints should go away and begin to see that growth. Did you wanna comment any more on that, Kieran? Look, again, as we demonstrated before from 2016, it's that 9% CAGR, right? I still think 7% is still healthy and still, you know, if you look at some of the stats in terms of the growth trends, right? Still, we believe in some of the verticals above the actual underlying growth trends in the market. I still think 7.5% is a very good, a good target that's reasonable. Got it. Thank you. The 200 basis points of margin improvement from the Mexico facility over the next three years, what would be the cadence of that? Can we expect something in 2023? No, I think 2023 is the year where we'll be making all sorts of product moves into Monterrey and around through the network, the Genie network. Really that, the benefit from that will kick in, you know, later 2024 and into 2025 before we see the benefits from that. Remember, that includes we're gonna also get benefits from the Mexico supply chain as well. The AWP margin improvements happen sequentially throughout. Steve? Steve from UBS. Thanks. Do you see parts and service as being a bigger percentage of your overall revenue mix as you get out to that 2030? Just curious for the overall business and then by each segment. I think you called out within the utility segment 25%, but curious how you see that as a changing mix. Related to that, how do you see the whole move towards electrification as either a headwind or a tailwind to that? A couple questions there. I'll start, and then you all jump in. Overall parts and service growth, I would say consistent with the overall top line growth. Obviously, we're making investments to drive that. We think that's important. On the utility side, it's 25%, but it's really the only business that we have a large component that's actual service, i.e., wrench-turning. That's a big part of that business, and that's dilutive from a margin standpoint. And that's an area that we're gonna drive improvement in as we go forward. Overall growth across both businesses, I think it's relatively similar. Yeah. As I look, in terms of the growth. Then, you know, the digital aspect and the customer interface aspect continue to drive improvement in that. Over time, we'd like to believe that that would drive some incremental growth, perhaps above what we have, forecasted. That's a key part. In the world we're in today, we've all been Amazoned, and we need to provide that digital interface. It's, you know, some of the cost and the investment that we need to make to do that as we go forward. Yeah. Did I get all? I didn't. Go ahead, Simon. I was just gonna add on your addressable market question on the parts side. You know, 70% of our portfolio is already electrified as it is today. It's 60% on the MP side. Having an electrified portfolio is nothing really new to us. To your point, actually, you know, it's a great point you're making. There are technologies that are slowly becoming obsolete over the next 5 years. We also see new technologies emerging that will bring parts and service and downstream revenue opportunities. We're not that concerned from an addressable market standpoint. Yeah. Look, from an MP perspective, I know there's a bit of a theme in automotive about replacement and electric, you know, doing away from engines and oils and parts, et cetera. I would, at least in the MP segment, a lot of our products are very application. You know, they're crushing, they're shredding, they're grinding. A lot of the parts are actually consumable parts, wear parts, et cetera. That won't change. You know, as I said, look, similar to Simon, we've had a lot of electric products for many years in our crushing and screening and our cranes business. We don't see it having a significant downside to our parts business. I think most of the growth in the parts is gonna come in our investments in digital and making it easier for customers to buy parts effectively. So. Oh, sorry. Oh, go ahead. Me? You're good. You can continue. You're good. Sorry. 2 questions. One, for the investors that can't get comfortable with thinking out to 2027, is there any way, Julie, you can address how investors should think about through cycle margins versus margins that would in 2027 be somewhat at peak? You know, because I think that if the margin cyclicality is reduced over time, that's probably additive to your multiple. My second question is, if we just do the math, you know, for AWP and for MP, the implied mix of earnings in 2027 is like 50/50 versus today, MP is 60%. You guys have been talking a lot about MP, and it's less cyclical and, you know, the margins are less cyclical and wanting to grow the utilities business. I'm wondering if there's a conscious effort or do you care about mix of where the earnings are coming from and what that implies for the multiple of your stock? I guess from a first perspective, you know, we tried, you know, we were showing the in the Genie presentation, in particular, the opportunity we have to improve margins and the the whole Mexico facility is, you know, that's margin enhancement that happens regardless of the cycle. We, you know, we improve those margins. And we've taken out $90 million of cost so that it makes us more nimble, more resilient as we go forward. Our, you know, our decremental margins, you know, will if in a downturn, although we're not forecasting a downturn, okay? You know, will be, you know, 20% or below. We think that we're, you know, that this business is a very different business from what it was several years ago. We're pleased with the progress, and we have more work to do, and we'll continue with that. Right now, because of when we think about organic and organic tariffs, and those are the numbers you're quoting on a 50/50 basis, you know, we would be saying that, gee, there's more margin enhancement opportunity, in the AWP business right now. That's the way that, I guess, the math works at the end. We're very interested in continuing to grow the MP business and, you know, the utilities businesses as well. We, you know, we showed you organic, and then we talked about the opportunities that we also have from an inorganic perspective. Yes. Hi, Jerry Revich, Goldman Sachs. Good afternoon again. I'm wondering if you can just talk about the AWP targets, given all of the good work that you folks have done in terms of taking out SG&A and now the plan consolidation. It just feels like your margin opportunity is higher at the sales level that you folks laid out. Just looking at the performance of the business in 13 through 15, you know, before all those changes, you were essentially at that, you know, 14% margin rate, give or take. Can you just expand? Are you folks just giving yourselves room to execute, given all the price cost dynamics? Can you just expand on that, please? Take a time and then I can. Yeah. I mean, a great question. We're very optimistic about our line of sight, as I mentioned in our presentation. You know, the 3 buckets of actions that we're taking. We do operate in a slightly different environment over the next 5 years than we did in the last 5 years. Think about FX alone, so it's a little apples and oranges. Overall, we're very comfortable that we can bring this business back to 14% OPI, and we have clear line of sight to get there. Sorry, just to make sure I'm on the same page with you. It sounds like you can get there at a lower sales level than what you folks laid out for 2027, correct? That is correct. Yeah. That's correct. Yeah. That's a good way to look at it, Jerry. Absolutely right. That's the improvement in the overall margin, the resiliency of the margin. Again, that sometimes people say, "Hey, peak margins and Genie back at time X, Y, or Z." At some of those times, the exchange rate was like 1.42 to the dollar. That also has an impact on us as well, so. Our five years is based upon like current exchange rates. Yeah. We're not counting any margin enhancements or whatever that we might get from a change in, in exchange rates. Exactly. And can I just ask a follow-up on that note? Any changes in the footprint that's possible from here if the current, you know, parity versus euro, et cetera, environment holds, anything that we should be thinking about for the footprint? You mean U.S.? No. Global. Global. Global footprint. From a Genie perspective. Yeah. Any changes in terms of global footprint? Right. We believe we have put the foundation in place that we can build on for the next five years. We're very pleased with what, brick and mortar that we currently have, and, we feel that we have a lot of upside working with that. Right, and a gain, you know, the flexibility of the global footprint gives us the opportunity to move things around as things change. So, you know, we like that aspect of the business. We do have some inherent flexibility. As Simon said in his presentation, a higher percentage moving to lower cost areas over time is also gonna contribute significantly to that margin expansion. Thanks. Thanks. Timothy Thein from Citi. Maybe two for you, Kieran. The first actually just dovetailing off that last point about the footprint. As you think about MP, specifically on the aggregate side, a lot of potential catalysts for growth in North America, how do you feel about the footprint for your business in terms of, you know, is there, you know, capacity to support that with a largely northern European footprint? Yeah. There is. I mean, we've made capacity investments. As I said earlier, we in Northern Ireland, we invested in a fabrication facility earlier this year, and we plan to extend in 2023, one of our other fabrication facilities. A unique thing about Northern Ireland, right? This is important to remember for North America. The cost for us to freight a crusher from Ireland to, say, Baltimore, Maryland, is half the price for us to freight a crusher, say, from the central United States to Baltimore, right? From a freight perspective, right? Freight per se doesn't hamper us. You know, the roll-on/roll-off products, they're complete. Northern Ireland actually-To be honest, it's actually geographically an optimal, you know, location to go on east and west, right? Based on how trade, the freights, routes work. We do not believe that is to be any disadvantage to this at all. Got it. Okay. Then just, you know, in light of this, the supply chain environment we're in and given the backlogs that you have, what kind of tests or what kind of, you know, effectively getting to the soundness of the backlog in terms of what kind of tests can you-? Yeah, look, I mean, we've always been, particularly in a distribution model, right? I talked about using digital tools to enhance our business, you know, from a customer point of view. Over the last couple of years, we have a tool called the Inventory, right? Which is an electronic tool where all our distribution partners report back on a monthly basis, on a real-time basis, the level of inventory that they hold. You know, what's on rent, what's in stock, what they traded in, et cetera. We watch those trends carefully, right? Because, again, a first indicator of a potential slowdown per se would be, you know, the inventory building in your, in your channel. We monitor that and we're fairly disciplined on that. We also, even just in a very practical sense, we look at, you know, are customers pushing back? You know, if they've given us orders, are they pushing back saying, "Look, delay that order." Are we even seeing cancellations? Look, we're not seeing, at the moment, we're not seeing any signs at all, that those dynamics are happening across the business. So we're always I think it's a good practice to be vigilant irrespective of where we are in the cycle, and that's something we've been very vigilant on, right? We really learned that lesson back in 2007, 2008, to really look at that, you know, the downturn then. I mean, the reality was there were warning signs before that in hindsight we should have seen, right? We're very vigilant on looking at our backlog. Go ahead, Adam. Adam. Adam. Yep. Thanks, guys. Just first, what type of investment would you think would be required for that $1 to $3 in EPS that you suggest on the inorganic side? Does that assume that you guys would feel comfortable going above the 2.5 times net debt target through cycle? The second one also is more about the business on the utility side. Can you give the size for us again, how big utilities is? Then embedded in the AWP margin improvement, how much margin improvement are you expecting from utilities in that segment? You want me to give the back half on utilities? Yeah, I'll do it. That's right. Yeah. Utilities businesses, historically it's been about a $400 million-$450 million business. That business we believe can grow. Historically, it's been a 9%-10% operating margin business. We're not enjoying that now as a result of the supply chain disruption we're having. In our plan, that's, you know, a low-mid single-digit type margin opportunity that we think they can grow on that business. There is a mixed implication in the utilities business. As we grow that IOU and public power side, all those require very expensive chassis. There's an area of margin dilution. It's still accretive, it's good business. From a margin standpoint, it does give you some margin compression when, you know, you're purchasing a quarter of a million dollar, you know, chassis that you're gonna upfit. That is an aspect of that business as we go forward. That, that's kinda where we are and where we think. It will contribute to the overall segment improvement in operating margin. It has to. From a SG&A perspective, just to highlight, you know, that brings in great operating profit and cash. It just comes in at a lower margin. Just to clarify, we expect to improve the margins in that business, and we expect them to be in the lower double digits. Yeah. you know, and, you know, going forward. From a modeling perspective, when we think about, you know, what M&A would be, it would be modeling things in, you know, $1 billion-$2 billion of use of capital. Our target is 2.5 times through the cycle. I just wanna continue to say through the cycle and 2.5 times and maintain that. Thanks, Adam. Thank you. So we have a couple questions that have come in online from Seth Weber at Wells Fargo. What gives Terex confidence that the U.S. rental channel hasn't learned how to operate their AWP fleets at a structurally higher age? Yeah, great question. Thank you. Obviously, our customers are, you know, very well-run businesses, and, you know, obviously, we stay very, very close with them. As we put our assumptions together on what they are expecting and what they're comfortable with, I'm not suggesting that they're necessarily overly concerned with their fleet age. It's just math at the end of the day, you know? These numbers are very aligned with what our customers are telling us in terms of amplified, you know, replacement demand going forward. It's just basically math on where they want to be in terms of their asset turnover. Great. From Jacob Moore at KeyBank. If you assume we enter a prolonged economic downturn or recession over the next six to 12 months, in what way is this Terex insulated, and in what businesses do you expect to be affected the worst? A really good question. Obviously, we're all trying to figure out what the macro situation is gonna be. I think the first thing is you have to look at we have historically high backlogs. Kieran's backlog is 3 times his historical level. Simon's in utilities. Like I said, we're booking things out to 2025. The first sign for us will be order pushouts and order cancellations. We're still seeing reasonable order intake. We're not gonna report mid-cycle, we're seeing reasonable order intake. We think a buffer for us is the fact that the backlog is much stronger, and we have much more forward visibility. Our issue in 2023 is not the recession. Our issue in 2023, as we sit here today, is the supply chain. Given the level of backlog coverage and visibility that we have, it's historically high. Our governor, we don't believe is gonna be demand, it's gonna be the supply chain. That's demand there. Kieran mentioned a very important subject on his side of the business. Normally, when we go into some type of downturn, normally dealer inventories are very high. Call them bloated. In this case, we're going into this period of time where dealers' inventory is quite low. Simon just talked about on the utility. I'm sorry, on the Genie side, the postponement of the replacement cycle and the pent-up demand that's there. Those are factors that are buffers, cross currents, if you will, that we think, you know, even if there is a recession, we can drive through that, as we go forward. Now, again, that's how we think today. We'll be back to you in, you know, in February. For us, I keep coming back to order pushouts, order cancellations, and being vigilant about our backlog. I can assure you that these two gentlemen are into it all the time, making sure that, you know, that what we have is as real as we understand it. I think that provides the shock absorber for, you know, for a recession. Second, you think, okay, the demand we talked about, and again, it's probably, you know. It's a guess, it's an estimate. You know, the infrastructure spend is just starting. Late 2023 into 2024 is probably when you begin to see these types of things. Customers, you know, they're gonna be planning their business that way. If they're seeing these contracts coming, if they're seeing that business coming, they're not gonna be in a real hurry to cancel things and postpone things and delay things. It's a, it's an ebb and flow, but going in to this, you know, potential recession with the backlog we have, the age of the fleet, in Simon's case, and very limited dealer inventory, we think that provides some degree of a shock absorber. Right now, you know, our bigger concern is not demand, it's supply chain. That's what's gonna be the governor for right now, for next year. And we haven't seen, you know, any orders or bookings yet related to all of those, you know. Yeah. The infrastructure and some of that U.S. spending that John highlighted earlier. That's upside as bookings come through for that as well. Yep. Hi, David Raso. Yes. Here is the conversation with the board. When you see the way the stock acts, when people get nervous about the macro- Yeah. The multiple, I mean, just a few months ago, it was down to 7 times earnings guidance, right? Obviously people would be fearful of the earnings are gonna get cut. You can tell they're taking on a sense of historically not great cash flow. The leverage today is a little bit lower than normal, but historically it's been pretty high. The conversation with the board of 2.5x over a cycle, not just going above it, then deleveraging for a particular deal that you like o ver the cycle, has there been a serious conversation about, yes, there's growth opportunities, but the stock gets punished so much when there's a fear of leverage going into a downturn to just simply run the company at lower leverage? It's a great question, David, and we've actually got a board meeting coming up on Wednesday and Thursday, so that will be part of our discussion. I mean, we look at opportunities, and you're right. If you're going to lever up, you've got to be rock solid on what does that opportunity present. If we're not super confident that it will deliver what we think we're gonna do, we're probably not gonna do it. We do believe that with our cash flow generation, the capabilities we'll build, that we're not overlevered at 2.5 times through cycle. We think that our processes and improvements. You know, Kieran's business, and, you know, Jamie, you talked about, okay, it's down to 50%. Most of the world doesn't recognize it's 60% today. It's a consistent generation of not only earnings, but also of cash flow. There is a degree of consistency there as we go forward. The other thing I'd say is our businesses throws off cash when the market turns down. It consumes cash as we grow. If there's a downturn, you know, there's a period of time, as you, as you well know, we throw off a significant amount of cash as we're bringing our inventories down as we go forward. It's a debate that we have. We still think it's a reasonable target. I will say, David, for us to go there, we've got to be rock solid in what is that M&A opportunity and target that we have the confidence that we can deliver through that. I think the other thing that, you know, Julie said the other targets that we look for, we're looking for accretion in the first year. She also said, we're looking for it covers its return on invested capital in year 3. We still think that's really important, and as does the board. Those are all the things that will go in. We'll do, you know, cash flow analysis up, down, sideways to see are we comfortable. We still believe that 2.5 times through cycle is a... We're significantly below that right now. 2.5 times through cycle is reasonable. If we decide it's not, we'll change it. Right now, David, we're still comfortable with that 2.5 times through cycle. It's not lost on us how the market has responded to companies that are overlevered in this environment. I'll also put it that way, David. Low leverage, you know, we have flexibility. Our balance sheet provides us flexibility right now. Yeah. 1.4 times. Yeah. We sit here today. Thanks. Larry De Maria with William Blair. mentioned $1 billion-$2 billion in capital for M&A. Is ultimately the goal to do a sizable deal and have a new reporting segment? Can potentially you can build out utilities and have that as its own reporting segment? What's the timing you guys are thinking about on M&A? Is it sooner than later in the plan, and what does the pipeline look like now? Yeah, great. All good questions. There's like three or four really good questions in there. That's fair. Thanks, Larry. If I don't get them all- Yeah, we'll accept part. ...bail me after. In terms of timeline, we're building out a pipeline. The pipeline looks from larger transactions to bolt-on acquisitions and pretty much everything in between. That's the pipeline that we've developed. We've executed on some smaller technological investments, some capacity expansion investments, and some bolt-on product investments. We'll continue to look on the bolt-on side. We also look at larger transactions, and, you know, that's all about a willing buying and, you know, seller and where is the strategic fit. As we said, we like utility space. I just think that that's gonna continue to grow over time. Kieran in his aggregates, you know, concrete, Environmental environmental. You know, Larry, we think there's gonna be opportunities there. There's a degree of fragmentation in those spaces that could present themselves, opportunities for us, and that's in our pipeline. We're engaged in conversations all the time, and active. One of the things I won't do is predict timing of an M&A transaction. I just won't do that. But we are active. We do have the balance sheet in cash. But we're gonna be disciplined in terms of what we acquire. I think the other criteria that you heard is we're looking for good businesses that we can make better. We're not overly interested in any type of turnaround story. We want a good business that can be accretive and can drive the return on invested capital by year three. That's difficult if it's a significant turnaround. Yeah, I think the story is we have just a lot more options than we did five years ago. Yeah. Yeah. Did I get them all? Yeah. Thank you for that. A very helpful color. The second part, different here. The two and a half billion dollars in aftermarket parts and service opportunity, do you know what your customer wallet share now is and what it should be? Is that a big part of it just getting more each year because you're underperforming the year or maybe you're not? I'm not sure. I think. You wanna go? Yeah. We don't feel we're underperforming. Yeah. Again, we have the luxury of being very close to our customers and there's a lot of dialogue. Obviously, they want us involved, and they ask us to be involved. We're not underperforming there, but obviously, you know, we wanna make sure that we think it's actually a competitive advantage, at least in the Genie business today. We wanna make sure it stays that way going forward. No, no, underperforming in that area. They've added new product lines, new brands, you know, for, you know, that they can bring to the market. I think they've done a good job, and I think they've got a good plan as we go forward to drive that. Kieran, you want. Yeah, look, on the aftermarket parts, I mean, I do wanna stress we have grown. You've seen the CAGR. The 6% plus CAGR in the aftermarket parts. One of the things I talked about some of the digital investments that we're making that really tie in our distribution partners, you know, CDI, Connected Dealer Inventory. It's like there is opportunity. We don't have a full wallet share of the business, of our distributor's business, for example, or our customers. By linking in those digital tools, and that's not the primary motivation, but it does joins us much stronger than, for example, CDI. We're even planning dealer inventory at the point of sale level. We can see their inventory, you know, and really also the fact that we're implementing e-commerce systems at the distribution level. That interconnects everything, right? We would expect, hard to put a hard number on it, but we would expect to grow our wallet share of that aftermarket over the course of the next few years. On the utility side, it really is we've made the investment in our service centers. Now we got to get the profitability of those service centers up. We're gonna close out with 1 more question from online. This question comes from Mircea Dobre at Baird. U.S. rental industry consolidation is picking up. What longer term impact do you think this has on your AWP business? Thanks, thanks for the question. Again, we see, you know, obviously, a lot of developments are, you know, we deal with very advanced customers in our space. We don't necessarily see a material change going forward in, you know, the mix of our customers. It's not something that is concerning us, to be very honest with you going forward. Okay. I'll just wrap it up real quick. Thank you for your time and interest in Terex. We truly appreciate it. Great questions as always. If as we go forward, we'll continue to keep you apprised of the progress that we're making on our quarterly earnings call and our follow-up calls, again, so that you know where we are, what we're doing. Again, the team has delivered performance. We're confident in the targets that we set out, that we can achieve those targets as we go forward. Otherwise, we would not have put them out. That's what we as a leadership team and a management team are committing to deliver for our shareholders as we go forward. Last but not certainly least, there is lunch here, so please, I don't want you to go. Please don't go away hungry. Before you leave, there is the bucket truck. John, is it here? Good. Okay. The bucket truck from Con Edison is out front. Please just take a look at the industry's first all-electric bucket truck. Goodie bags. Oh, yeah. Sorry, Jon won't let me. He's getting up. We have a Christmas or a goodie bag for you, so please take that. Finally, given that it is the holiday season, I hope everyone has a wonderful holiday season and as the year-end. For all the analysts in the world, you get a couple days off before the race starts yet again in the first quarter. Thank you all for everything you do, and have a wonderful holiday season. Thank you. Thank you so much. For those of you virtually, you may now disconnect.